Itemized Deduction

Category: tax

An eligible expense that individual taxpayers can claim to decrease their taxable income.

Instead of the standard deduction, taxpayers can "itemize" if they have enough high-cost expenses. This includes mortgage interest, large medical bills, state and local taxes (SALT), and charitable donations. You must have receipts for every item claimed.

Common Examples

• Because their mortgage interest and charitable gifts exceeded the threshold, the homeowners chose an itemized deduction for the tax year.
• Keeping digital records of every donation and medical receipt is vital for anyone who chooses to use itemized deduction filing.