Chapter 12 of IRS Publication 17 finishes the itemized-deduction part of the book, after taxes in chapter 11. Its own text covers three things: miscellaneous deductions that no longer exist, expenses that are never deductible, and the short list of other items that go on Schedule A, line 16. Medical expenses, charitable gifts, casualty losses and mortgage interest left Pub 17 with the 2020 edition and now live in Pubs. 502, 526, 547 and 936, so these notes add a short tour of them to cover all of Schedule A. The chapter runs from page 101 to page 105 in the 2025 edition and to page 106 in the 2023 and 2024 editions, with the same content. Forms touched: Schedule A, Forms 4684, 8283 and 2106, and Schedule 1. Figures labelled 2026 are planning figures, because Pub 17 (2026) is not yet published. These are unofficial study notes in our own words; the IRS publication controls.
Key terms
| Term | Meaning in one line |
|---|---|
| Miscellaneous itemized deduction | An old deduction that fell under the 2%-of-AGI floor, such as tax preparation fees |
| Written acknowledgment | The charity's receipt for a gift of $250 or more, in hand by the earlier of your filing date or the due date with extensions |
| Capital gain property | Property that would produce a long-term gain if sold, such as stock held over a year |
| Personal casualty loss | Sudden, unexpected damage to or loss of personal-use property |
| Acquisition debt | A mortgage used to buy, build or substantially improve the home that secures it |
Miscellaneous deductions and employee expenses
- Deductions that used to be subject to the 2%-of-AGI floor cannot be claimed for 2023, 2024 or 2025. The 2025 law ends them permanently from 2026, with educator expenses as the exception.
- Four groups may still deduct unreimbursed employee expenses as an adjustment to income, using Form 2106: Armed Forces reservists, fee-basis state or local officials, employees with impairment-related work expenses, and qualified performing artists. An artist needs two or more employers paying at least $200 each, expenses above 10% of performing-arts income, and AGI of $16,000 or less before those expenses.
- Educator expenses: up to $300 for 2023 to 2025 ($600 if both spouses qualify, $300 each at most) on Schedule 1, line 11, and $350 for 2026 (planning). From 2026 an itemized deduction without the dollar cap also exists, with a slightly different definition that covers coaches.
Expenses you cannot deduct
- Tax, investment and similar costs: tax preparation fees, software and e-file fees; investment fees; safe deposit box rent for taxable investments; separately billed IRA fees; card fees on tax payments; hobby expenses; appraisal fees.
- Personal costs: commuting, club dues, health spa fees, wristwatches, life insurance premiums, funerals, political and campaign costs, lobbying, personal legal fees, home security and adoption costs (a credit may apply).
- Fines and penalties paid to a government: not deductible. Exceptions are restitution, amounts paid to comply with the law, some court-ordered payments and taxes due, and the first two count only if the order or settlement identifies them.
What still goes on Schedule A, line 16
Gambling losses up to winnings; casualty and theft losses on income-producing property (Form 4684, Section B); federal estate tax on income in respect of a decedent; certain bond premium; repayments over $3,000 under a claim of right; unrecovered annuity or pension investment; impairment-related work expenses of a disabled person (Pub 17 mentions these in two places; the Schedule A instructions put them on line 16); excess deductions of an estate or trust. Legal fees for unlawful discrimination claims go on Schedule 1, line 24h. The 2026 draft Schedule A splits line 17 into lines 17a to 17k.
Medical and dental expenses (Pub. 502; lines 1 to 4)
- Deduct only the part of qualifying costs above 7.5% of AGI.
- Include costs you paid for yourself, your spouse and your dependents, less insurance reimbursements. Credit card charges count in the year charged.
- Qualifying costs include insurance premiums paid with after-tax money, travel for care at the standard rate or actual gas and oil, plus tolls and parking, and long-term care premiums up to an age-based cap (table below).
- Items that only help general health, such as vitamins or a vacation, and premiums paid through a pre-tax payroll reduction do not count. For HSA distributions see Pub. 969 and our HSA guide.
Charitable gifts (Pub. 526; lines 11 to 14)
| Gift | AGI limit |
|---|---|
| Cash to churches, schools, hospitals and other 50%-limit groups | 60% |
| Noncash gifts to those groups | 50%, less cash gifts |
| Appreciated property to those groups, at full value | 30% |
| Most other gifts, such as to a private foundation | 30%; 20% for appreciated property |
Excess carries forward five years. Gifts totaling 20% of AGI or less are never limited.
| Gift | What you must have |
|---|---|
| Any cash gift | Bank record or receipt showing charity, date and amount |
| Any gift of $250 or more | Written acknowledgment, stating any goods or services received |
| Noncash over $500 | Form 8283, Section A |
| Noncash over $5,000 | Qualified appraisal and Form 8283, Section B |
Used clothing and household items must be in good condition. A gift that is partly a purchase is deductible only above the value you received. The limits and record rules held for 2023 to 2025; 2026 changes are in the second table below.
Memory aid for records: cash needs a record, $250 needs a letter, $500 needs Form 8283, $5,000 needs an appraisal. For how long to keep them, see how long to keep tax records.
Casualty and theft losses (Pub. 547; Form 4684)
- 2023 to 2025: loss of personal-use property is deductible only if caused by a federally declared disaster, after $100 per event and then 10% of AGI. The exception is personal casualty gains, which other personal losses can offset. Special qualified disaster losses use a $500 per-event figure and skip the 10% floor.
- 2026 (planning): state-declared disasters count too, and the rule is permanent. The 2026 draft Form 4684 keeps the $100 and 10% lines.
- All years: theft losses from a transaction entered into for profit, such as a Ponzi scheme or a qualifying scam, may be deductible without a declared disaster. Losses on income-producing property go on line 16.
Memory aid: declared disaster, $100 per event, 10% of AGI.
Gambling losses
Report all winnings on Schedule 1, line 8b. Deduct losses, including the cost of losing bingo, lottery and raffle tickets, on Schedule A, line 16, never more than the winnings, and never by netting. Keep a diary: date and type of wager, place, others present and amounts. For 2026 (planning) the deduction is the smaller of 90% of losses or winnings.
Mortgage interest pointers (Pub. 936; lines 8 to 10)
- Interest is fully deductible on acquisition debt up to $750,000 ($375,000 married filing separately) taken after December 15, 2017, or $1,000,000 ($500,000) for earlier debt. The $750,000 limit is permanent from 2026.
- Home equity interest counts only if the money bought, built or improved the home.
- Mortgage insurance premiums are not deductible for 2023 to 2025 but are again for 2026 (planning). The code keeps an income phase-out that starts at AGI of $100,000 ($50,000 married filing separately); check the final 2026 instructions.
By tax year: 2023, 2024, 2025 and 2026
| Item | 2023 | 2024 | 2025 | 2026 planning |
|---|---|---|---|---|
| Medical floor (share of AGI) | 7.5% | 7.5% | 7.5% | 7.5% |
| Medical mileage (cents) | 22 | 21 | 21 | 20.5, then 23.5 from July 1 |
| Charity mileage (cents) | 14 | 14 | 14 | 14 |
| Business mileage in Pub 17 (cents) | 65.5 | 67 | 70 | 72.5, then 76 from July 1 |
| Educator limit, Schedule 1 | $300 | $300 | $300 | $350 |
| Gross-income test for medical payees | $4,700 | $5,050 | $5,200 | $5,300 |
| Long-term care cap, age 40 or under | $480 | $470 | $480 | $500 |
| Age 41 to 50 | $890 | $880 | $900 | $930 |
| Age 51 to 60 | $1,790 | $1,760 | $1,800 | $1,860 |
| Age 61 to 70 | $4,770 | $4,710 | $4,810 | $4,960 |
| Age 71 or older | $5,960 | $5,880 | $6,020 | $6,200 |
| Rule | 2023 to 2025 | 2026 planning |
|---|---|---|
| Charity for itemizers | Full amount within AGI limits | Only the part above 0.5% of AGI |
| Charity for non-itemizers | None | $1,000 ($2,000 joint), cash only |
| Overall limit on itemized deductions | None | Cut by 2/37 of the lesser of itemized deductions or taxable income (before itemized deductions) above $640,600 (single or head of household), $768,700 (joint) or $384,350 (separate) |
| Gambling losses | Up to winnings | 90% of losses, up to winnings |
| Casualty and theft | Federally declared disasters | Also state-declared |
| Mortgage insurance premiums | Not deductible | Deductible |
2026 column: planning figures from Rev. Proc. 2025-32 and the 2025 law (P.L. 119-21); Pub 17 (2026) is not yet published. The tips, overtime, car loan and senior deductions are separate and work whether or not you itemize; see new deductions.
Rule changes by year:
- 2023 to 2025 editions: the text is the same apart from the mileage rate and educator-expense timing wording.
- 2025 return: the Schedule A total moves to Form 1040, line 12e, and AGI is line 11b.
- 2026 (planning): the non-itemizer charity deduction appears on draft Form 1040, line 12f. Draft Schedule A adds a charitable limitation worksheet and a mortgage insurance premium line (8d).
Worked examples
Example 1 (tax year 2025). A flood in a federally declared disaster area leaves Rosa with a $30,000 loss after insurance. Her AGI is $100,000. Loss after the $100 floor: $29,900. Less 10% of AGI ($10,000) leaves a $19,900 deduction on Schedule A, line 15.
Example 2 (2026 planning). Marcus itemizes with AGI of $150,000 and gives $6,000 cash to his place of worship. The floor is 0.5% × $150,000 = $750, so $6,000 − $750 = $5,250 is deductible. A married couple filing jointly who take the standard deduction could instead deduct up to $2,000 of cash gifts.
Example 3 (2026 planning). Tamar has $12,000 of gambling winnings and $12,000 of losses. For 2025 the deduction is $12,000 and the net effect is zero. For 2026 she deducts 90% × $12,000 = $10,800, so $1,200 is taxed. She must itemize to deduct losses at all.
Common mistakes and exam traps
- Netting gambling losses against winnings instead of reporting winnings in full.
- Deducting tax preparation or investment fees on Schedule A.
- Claiming a personal casualty loss that was not tied to a federally declared disaster in 2023 to 2025.
- Applying the 2026 charity floor or non-itemizer deduction to earlier years.
- Counting a gift of $250 or more without the written acknowledgment.
- Deducting mortgage insurance premiums for 2023 to 2025.
Forms and lines map
| Form and line (2025 form) | What goes there |
|---|---|
| Schedule A, lines 1 to 4 | Medical costs, 7.5% of line 2, and the excess |
| Schedule A, lines 8a to 8c, 9 | Mortgage interest and points; investment interest (Form 4952) |
| Schedule A, lines 11 to 14 | Cash gifts, other gifts (Form 8283), carryover, total |
| Schedule A, line 15 and Form 4684, line 18 | Personal casualty loss after the $100 and 10% limits |
| Schedule A, line 16 | Gambling losses and the other listed items |
| Schedule 1, lines 8b, 11, 24h | Gambling winnings; educator expenses; discrimination-claim legal fees |
| Form 2106 | Reservist, performing artist, fee-basis and impairment cases |
In the 2026 draft Schedule A, charity is lines 11 to 15, casualty is line 16, other items are lines 17a to 17z, and line 18 tests the itemized-deduction limit. Taxable income then feeds the tax computation in chapter 13.
Check yourself
(2025) AGI is $80,000 and medical costs are $9,500. What is the deduction?
Answer: $3,500, because 7.5% of $80,000 is $6,000 and $9,500 − $6,000 = $3,500.
(2024) Which medical mileage rate applies?
Answer: 21 cents a mile, plus tolls and parking.
(2023) May an employee deduct tax preparation fees on Schedule A?
Answer: No. They were a suspended miscellaneous deduction.
(2025) A donor gives $400 cash to a school and has only a canceled check. Is the gift deductible as claimed?
Answer: No. A gift of $250 or more also needs the school's written acknowledgment.
(2024) What is the AGI limit for cash gifts to a church?
Answer: 60% of AGI.
(2025) A storm damages a home but the area has no federal disaster declaration. Is the loss deductible?
Answer: No, unless personal casualty gains offset it. Personal casualty losses need a federally declared disaster for 2023 to 2025.
(2025) Winnings are $5,000 and losses are $7,000. What is the maximum deduction?
Answer: $5,000, the amount of the winnings.
(2026 planning) Winnings are $5,000 and losses are $7,000. What is the maximum deduction?
Answer: $5,000. 90% of $7,000 is $6,300, which is capped at the winnings.
(2026 planning) A single itemizer has AGI of $200,000 and gives $4,000 cash. What counts for the itemized deduction?
Answer: $3,000, because the 0.5% floor is $1,000.
Frequently asked questions
Are tax preparation fees deductible?
Not as a personal itemized deduction in 2023 to 2025, because they were a suspended miscellaneous deduction, and the 2025 law ends miscellaneous deductions for good from 2026. Costs of resolving tax issues on a business, rental or farm schedule are deducted on that schedule.
Can I deduct charity if I take the standard deduction?
Not for 2023 to 2025. For 2026 (planning) you may deduct up to $1,000 of cash gifts ($2,000 if married filing jointly) to qualifying groups. Our charitable giving guide has details.
Do gambling losses reduce my winnings on the return?
No. Winnings are income in full, and losses are an itemized deduction, so they help only if you itemize. See standard vs. itemized deductions.
Can a CPA review my itemized deductions?
Yes. A CPA can review a return, including the records behind medical, charity, casualty and gambling claims, against the rules for each year.
Official sources
- IRS Publication 17 (2025), chapter 12
- IRS Publication 17 (2024), chapter 12
- IRS Publication 17 (2023), chapter 12
- IRS: 2025 Instructions for Schedule A (Form 1040)
- IRS Publication 526 (2025), Charitable Contributions
- Rev. Proc. 2025-32 (2026 adjusted items)
- Public Law 119-21, sections 70108 to 70114 and 70424 to 70425
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.