itemized deduction


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Itemized deduction

Specific deductions allowed by the IRS outlined in the tax return.

Itemized Deduction

A deduction from one's taxable income as the result of a specific expense the taxpayer has had over the course of the tax year. Most medical expenses, for example, may be deducted from one's taxable income. The same is the case for interest on mortgages and business expenses. The IRS allows itemized deductions as an alternative to the standard deduction, which takes a flat amount out of one's taxable income. Itemized deductions are subject to certain restrictions; for example, some expenses must exceed a certain percentage of the adjusted gross income to be deductible.

itemized deduction

See deduction.
References in periodicals archive ?
It would cap the itemized deduction at $22,500, but it would protect the exemption for charitable donations.
It includes different tax brackets, exemption numbers (2, 4, and 6), and two distinct assumed itemized deduction amounts ($10,000 and $8,000) that are below the standard deduction amount ($12,400).
Tax Law section 615(d)(4) permits taxpayers to claim an additional itemized deduction of up to the first $10,000 of undergraduate tuition paid per eligible student.
165(c)(3), an itemized deduction is allowed for a theft loss, but under Sec.
Nor is it subject to the section 67 itemized deduction threshold of 2% of AGI or the section 68 AGI phaseout of itemized deductions.
ii) An itemized deduction for state and local income taxes, plus a separate itemized deduction for qualified motor vehicle taxes (above and [paragraph] K-4518 et seq.
The following examples and discussion will demonstrate various favorable combinations and consider the effect of the itemized deduction and personal/dependency phaseouts.
Assuming that the $1,500 is his only tier 2 itemized deduction (i.
This provision allows individuals, who previously were entitled to only a miscellaneous itemized deduction, to deduct their legal fees and court costs in arriving at adjusted gross income.
Furthermore, the expenses incurred by the employee, which are attributable to the amounts included in the employee's gross income, may only be deducted as a miscellaneous itemized deduction subject to the two-percent-of-AGI floor.
Be mindful of the phaseout of itemized deduction and personal exemption reductions.
Outside of the two-year window, the taxpayer must take a taxable distribution from the IRA and report the income; a donation is reported as an itemized deduction subject first to the charitable deduction limits, then to the itemized deduction phaseout.