Itemized Deductions
Eligible expenses listed individually on Schedule A to reduce taxable income instead of claiming the standard deduction.
What is Itemized Deductions?
Itemized deductions allow taxpayers to reduce taxable income by listing specific qualifying expenses on IRS Schedule A instead of claiming the flat standard deduction. Major categories include state and local taxes (SALT, capped at $10,000), mortgage interest on up to $750,000 of qualifying debt, charitable contributions, and unreimbursed medical expenses exceeding 7.5% of AGI. Taxpayers should itemize only when their total eligible expenses exceed the standard deduction for their filing status. The Tax Cuts and Jobs Act of 2017 roughly doubled the standard deduction, sharply reducing the share of taxpayers who benefit from itemizing.
Example
A married couple has $12,000 in mortgage interest, $10,000 in SALT (capped), $5,000 in charitable gifts, and $3,000 in qualifying medical expenses—totaling $30,000 in itemized deductions. Because $30,000 exceeds the $29,200 married-filing-jointly standard deduction for 2024, they itemize on Schedule A, saving roughly $220 in tax at the 28% marginal rate on the $800 excess.
Source: IRS — Schedule A (Form 1040)