itemized deduction Finance Definition
A deduction that is taken off of federal income
taxes by totaling individual expenses such as charitable expenses, mortgage
interest expense, and health care expenses, which are deducted on Schedule A.
These expenses have to be greater than 2% of the taxpayers adjusted gross
income in order to be deducted. An itemized deduction contrasts with a standard
deduction, which is an amount that can be deducted by every taxpayer filing in
that particular category.
itemized deduction Law Definition
n
A
deduction listed separately as a line item on an income tax return.
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