Define: Itemised Deductions

Itemized deductions are specific expenses that taxpayers can subtract from their adjusted gross income to reduce their taxable income. These deductions are reported on Schedule A of the federal tax return.

Common itemized deductions include medical and dental expenses, state and local taxes, mortgage interest, charitable contributions, and certain unreimbursed job-related expenses.

No, taxpayers must choose between claiming the standard deduction or itemized deductions. They should calculate both options and choose the one that provides the greatest tax benefit.

Yes, there are certain limitations on itemized deductions. For example, medical expenses can only be deducted to the extent they exceed a certain percentage of the taxpayer’s adjusted gross income.

Yes, property taxes paid on real estate can be claimed as an itemized deduction. However, there is a cap on the total amount of state and local taxes that can be deducted.

Yes, mortgage interest paid on a qualified residence can be claimed as an itemized deduction. However, there are limitations on the amount of mortgage debt that qualifies for the deduction.

Yes, student loan interest paid during the tax year can be claimed as an itemized deduction, subject to certain income limitations.

Yes, certain job-related expenses that are not reimbursed by your employer can be claimed as itemized deductions. However, these expenses must exceed a certain percentage of your adjusted gross income.

Yes, medical and dental expenses that exceed a certain percentage of your adjusted gross income can be claimed as itemized deductions. However, only expenses that are not reimbursed by insurance can be deducted.

Yes, donations made to qualified charitable organisations can be claimed as itemized deductions. However, taxpayers must keep proper documentation, such as receipts or acknowledgment letters, to substantiate their contributions.