Itemized Deduction
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Individual deductible expenses that a taxpayer lists separately on their tax return, chosen instead of the standard deduction when the total exceeds the standard amount.
## Itemized Deduction
Itemized deductions allow taxpayers to list specific expenses to reduce taxable income. Taxpayers choose to itemize when their qualifying expenses exceed the standard deduction.
### Common Itemized Deductions (US)
| Category | Limit |
|----------|-------|
| State and local taxes (SALT) | $10,000 cap |
| Mortgage interest | On first $750,000 of debt |
| Charitable contributions | Up to 60% of AGI (cash) |
| Medical expenses | Exceeding 7.5% of AGI |
| Casualty losses | Only in federally declared disasters |
### After TCJA (2017)
The Tax Cuts and Jobs Act nearly doubled the standard deduction and capped SALT at $10,000, dramatically reducing the number of taxpayers who benefit from itemizing. Only about 10% of US taxpayers now itemize, down from about 30% before TCJA.
### International Perspective
Most countries allow specific deductions (work expenses, charitable giving) but the US system of choosing between standard and itemized deductions is relatively unique.