what are itemized deductions 
an itemized deduction is an expense that can be subtracted from your adjusted gross income agi to reduce your taxable income and lower the amount of taxes you owe taxpayers can itemize deductions like mortgage interest charitable gifts and unreimbursed medical expenses or choose to take the standard deduction a fixed dollar amount that varies by filing status understanding itemized deductionsitemized deductions reduce your taxable income and your savings depends on your tax bracket suppose an unmarried single filer with a gross income of 80 000 claims itemized deductions totaling 15 000 subtracting those deductions from gross income yields a taxable income of 65 000 which falls within a 22 marginal tax rate bracket for 2023 and 2024 12itemized deductions are recorded on schedule a of form 1040 3 taxpayers must save all receipts and documentation of expenses reported in case the internal revenue service irs requests them in an audit additional proof can include bank statements insurance bills medical bills and tax receipts from qualified charitable organizations 4tax deductions should not be confused with tax credits which directly reduce your tax bill if you calculate your taxes due as 14 000 and are eligible for a 1 000 tax credit your bill is cut by 1 000 to 13 000 5itemized deduction vs standard deductionthe majority of taxpayers have the option to itemize deductions or claim the standard deduction nonresident aliens must itemize and married individuals who are filing separately each must claim the same type of deduction 6the decision depends on which deduction type garners the lowest tax liability if you file as a single taxpayer or are married and filing separately you will fare better with the standard deduction of 13 850 for 2023 or 14 600 for 2024 if your itemized deductions total less than that amount 12