Learn more about it. Itemized deductions are expenses you have incurred throughout the year that can be used to reduce your taxable income. It can be taken in lieu of the standard deduction—a ...

shapecharge / Getty Images Itemized deductions can reduce your taxable income, lowering the amount of tax you owe. However, they require careful tracking of your eligible expenses and are often ...

Here's how it worked. Let's say your AGI is $40,000 and your medical expenses were $5,000. Assuming you itemized, you could claim $1,000 as a deduction, or $5,000 in expenses less the floor (10% x ...

The IRS allows you to claim deductions that reduce the amount of tax you owe. Those deductions either are itemized deductions or standard — a flat rate.

These include: Most tax software can help you itemize your deductions. You’ll report the expenses on Schedule A, Itemized Deductions when filing your income tax return. The Internal Revenue ...

2. Group Together Your Itemized Deductions Many itemized expenses can be deducted only if they exceed a certain percentage of your adjusted gross income (AGI). By combining itemized deductible ...