Some itemized deductions can be limited based on income.
Itemized deductions include a range of expenses that are only deductible when you choose to itemize. Common expenses include:
- Mortgage interest you pay on up to two homes
- Your state and local income or sales taxes
- Property taxes
- Medical and dental expenses that exceed 7.5% of your adjusted gross income
- Charitable donations
When deciding whether to itemize, keep in mind that you will be giving up the standard deduction amount. So, after adding up your itemized deductions, make sure your itemized deductions total is greater than the standard deduction amount for your filing status. If it’s not, then you'll most likely pay more in tax if you itemize.
Standard Deduction vs. Itemized Deductions: Which Is Better?
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