itemized deductions

Itemized deductions are specific expenses that taxpayers can deduct from their total income to reduce the amount of taxable income. Instead of taking a standard deduction, individuals list eligible expenses like mortgage interest, property taxes, medical expenses, and charitable contributions. By itemizing, taxpayers can potentially lower their tax bill if their total deductions exceed the standard deduction amount. It’s essential to keep accurate records of these expenses, as they can significantly impact the overall tax liability when filing a tax return.