Itemized Deductions
Definition
Specific expenses you can deduct from your AGI instead of taking the standard deduction. Common itemized deductions include state and local taxes (SALT, capped at $10,000), mortgage interest, charitable contributions, and medical expenses exceeding 7.5% of AGI. You should itemize only if your total itemized deductions exceed the standard deduction for your filing status.
Example
If you paid $8,000 in state taxes, $12,000 in mortgage interest, and $5,000 in charitable donations, your itemized deductions total $25,000—exceeding the 2025 standard deduction of $15,000 for single filers.
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