What must a taxpayer do to itemize deductions?

To itemize deductions, a taxpayer must complete Schedule A and ensure that their total itemized deductions exceed the amount of the standard deduction applicable to their filing status. This is crucial because itemizing is only beneficial if the total deductions provide a greater reduction to taxable income than the standard deduction available. By filling out Schedule A, taxpayers provide a detailed account of their allowable deductions, which may include expenses such as mortgage interest, state and local taxes, medical expenses, and charitable contributions.

Choosing to itemize rather than take the standard deduction is a strategic decision that maximizes the potential tax benefit. If their itemized deductions do not exceed the standard deduction, the taxpayer would typically opt for the standard deduction, which simplifies the filing process and often results in a lower overall tax liability.