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Categories: General Tax Terms

Itemized Deductions refer to specific expenses that taxpayers can deduct from their total income to reduce their taxable income on their tax returns.

Unlike the standard deduction, which is a fixed amount, itemized deductions require taxpayers to list (or itemize) each eligible expense. Common categories of itemized deductions include mortgage interest, state and local taxes, medical expenses, charitable contributions, and certain unreimbursed business expenses.

Taxpayers must choose between taking the standard deduction or itemized deductions, and it is generally beneficial to itemize if their total allowable deductions exceed the standard deduction amount for their filing status.

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