Itemize

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Itemize

To list a specific expense the taxpayer has had over the course of the tax year in order to reduce one's taxable income. One may itemize most medical expenses, for example, and deduct them 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.
References in periodicals archive ?
You may decide to postpone the donation until sometime in 2017, when you might be itemizing and get a tax benefit from your contribution.
Another benefit of itemizing estimates is that it provides our employees and subcontractors with a recipe.
NUMBER OF DEPENDENTS THAT WILL CAUSE AVERAGE TAXPAYERS ITEMIZING DEDUCTIONS TO BE SUBJECT TO THE AMT [*] Adjusted Gross Income Number of Dependents Head of Household $60,000-82,700 4 $82,700-100,000 3 Married Filing Jointly $60,000-63,500 10 $63,500-67,150 9 $67,150-70,800 8 $70,800-74,450 7 $74,450-77,450 6 $77,450-100,000 5 Married Filing Separately $50,000-75,000 2 (*.
Keith Walker, assistant professor in the School of Accountancy at Southern Illinois University-Carbondale, said the standard deduction is more or less a tipping point which may entice people to give more to charities in order take advantage of itemizing deductions.
the standard deduction can be summarized as: The closer the amount for itemized deductions is to the standard deduction amount, the more likely itemizing may result in lower overall taxes.
The deduction for seller-paid points could mean the difference between itemizing and not itemizing for many taxpayers.
For example, taxpayers with excess itemized deductions of less than $1,000 for the past two or three years might be contacted to discuss strategies to address the diminishing tax benefits of itemizing.
A nationwide Gallup Poll commissioned by GII reported lower numbers with 50 percent of respondents itemizing deductions and 11 percent deducting $500 or more.
Without itemizing, people who contribute to charities for the write-offs will no longer have that incentive.