Itemized Deductions
List of specific deductions (mortgage interest, charity, medical, taxes) that can exceed standard deduction and lower taxable income.
What You Need to Know
Itemized deductions let you deduct actual expenses instead of taking the standard deduction ($14,600 single, $29,200 married filing jointly for 2024).
Common itemized deductions:
- Mortgage interest on loans up to $750,000
- State and local taxes (SALT) capped at $10,000
- Charitable donations (cash and property)
- Medical expenses exceeding 7.5% of AGI
- Casualty and theft losses from federally declared disasters
Only itemize if total exceeds standard deduction. Example: $15,000 mortgage interest + $10,000 SALT + $5,000 charity = $30,000 itemized beats $29,200 standard by $800.
Most taxpayers take standard deduction since Tax Cuts and Jobs Act doubled it in 2018. High earners in expensive states with mortgages benefit most from itemizing.
Sources & References
This information is sourced from authoritative government and academic institutions:
- irs.gov
https://www.irs.gov/forms-pubs/about-schedule-a-form-1040
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Related Terms in Taxes
Effective Tax Rate
Your actual tax rate—total taxes paid divided by total income. Lower than marginal rate because of brackets and deductions.
Ordinary Income
Income taxed at regular rates—wages, salary, interest, short-term capital gains. Taxed higher than qualified dividends and long-term capital gains.
Taxable Income
Income that's actually taxed after subtracting deductions from AGI. Used to determine tax bracket and total tax owed.