What is an Itemized Deduction?

An itemized deduction is an incurred expense which reduces an individual’s taxable income, in accordance with IRS regulations. Itemized deductions are usually limited to 2% of adjusted gross income. Examples include mortgage interest, state and local taxes, charitable gifts and home office expenses.

 

See Also:

Tax Time Treasure Hunt

Your DIY Financial Planning Guide

Home Office? Check. Deduct it? Hmmmm….

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Tax Facts for the Jobless

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