itemized deduction

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Itemized deduction

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

See deduction.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Indeed, reducing her adjusted gross income (AGI) by $25,000 may create greater tax savings than a $25,000 itemized deduction, due to various tax code provisions.
For federal purposes, your total itemized deduction for state and local taxes is limited to a combined amount not to exceed $10,000 ($5,000 if married filing separate).
By releasing the first installment amounts now, Pappas is giving property owners who paid early last year the opportunity to create an itemized deduction they otherwise might not have.
It would cap the itemized deduction at $22,500, but it would protect the exemption for charitable donations.
Taxpayers in the higher marginal tax brackets receive the biggest benefit of using itemized deductions. The lower the tax bracket, the less likely taxpayers will benefit from electing the lower itemized deduction amount.
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.), or
The following examples and discussion will demonstrate various favorable combinations and consider the effect of the itemized deduction and personal/dependency phaseouts.
* The itemized deduction phaseout, for higher income level taxpayers, has been eliminated.
This elimination was confirmed in Notice 2018-61, in which the Department of Treasury and IRS opined that, unlike IRC 67(e)(1) deductions, the section 642(h)(2) excess deduction is treated as a miscellaneous itemized deduction to the beneficiary and the disallowance of miscellaneous itemized deductions under new IRC 67(g) "appears to include the section 642(h)(2) excess deduction."