Itemized Deductions

United States Tax Concept of Itemized Deductions

Items such as deductible interest, medical expenses, state and local taxes, charitable contributions, casualty and theft losses, unreimbursed employee expenses, and miscellaneous deductions that are claimed on Schedule A of Form 1040. These expenses can be deducted to reduce your income after your adjustments and before your income tax calculation. The amount of itemized deductions are subject to a 3% reduction when adjusted gross income exceeds certain limits.