What is itemizing on taxes?
When filling a U.S. federal tax return each filer must make a decision between the standard deduction and the itemized deduction. Either method is acceptable, but fully understanding what itemized deductions are and their benefits can simplify the filing process.DefinitionItemized deductions are deductions from adjusted gross income for personal expenditures and other allowable miscellaneous expenditures.BenefitsTax filers have the choice between the standard deduction, which is a fixed amount, or itemizing, which varies based on expenses for the year. If the amount of the itemized deductions exceeds the amount of the standard deduction, taxpayers will receive a larger benefit by itemizing.How to ItemizeIn order to itemize deductions on U.S. tax returns, it is necessary to complete a 1040 Schedule A.What Can Be ItemizedCategories of expenses that can be itemized include medical and dental expenses, taxes paid including sales tax, interest paid including mortgage interest, contributions
