Itemized Deductions

Definition

Specific expenses you can deduct from AGI instead of taking the standard deduction. Common itemized deductions include mortgage interest, state and local taxes (SALT — capped at $40,000 ($20,000 married filing separately) for tax year 2025, phasing down above the applicable MAGI threshold), charitable contributions, and medical expenses exceeding 7.5% of AGI. Source: IRS Publication 17 / Schedule A guidance for 2025 (https://www.irs.gov/publications/p17); last reviewed 2026-08-01.

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