Federal tax
Itemized deduction
An itemized deduction is an allowed expense, such as mortgage interest or state tax, that a filer lists on Schedule A instead of taking the standard deduction.
Itemizing means listing your allowed deductions on Schedule A of Form 1040 instead of using the standard deduction. The IRS says to itemize if the total of your allowable itemized deductions is greater than your standard deduction, or if you must itemize because you cannot use the standard deduction.
The usual groups are medical costs, taxes paid, home mortgage interest and gifts to charity, each with its own limits. Keep receipts and statements for each item. Texas has no state income tax, so the tax group often relies on property tax and sales tax. The tax preparation page explains how the comparison is made each year.
Related terms
Sources
Talk to Wallace CPA
Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one.