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 ?
Moreover, only people who itemize expenses on their tax returns can claim it.
As shown in Example 2 in Exhibit 3, a middle-income taxpayer that itemizes deductions, files as head of household, and has four dependents would have a $625 increase in tax liability due to the AMT system, primarily because of the add-back of taxes and miscellaneous expenses for AMT purposes.
If married taxpayers itemize their deductions, expenses that might be lost on a joint return may be deductible on separate returns.
Next to be considered is the relationship of one spouse filing as head of household and the other spouse married filing separately with the eligibility of the spouses to use the standard deduction and the right to elect to itemize deductions.
For 1990, taxpayers can elect to itemize deductions for certain medical costs, interest, taxes, charitable contributions, casualty and theft losses, moving expenses and miscellaneous expenses if their total exceeds the taxpayer's standard deduction.