As an American taxpayer you are allowed the greater of the standard deduction or your itemized...

As an American taxpayer you are allowed the greater of the standard deduction or your itemized deductions. Select on itemized deduction and discuss it. You should each pick one itemized deduction to discuss.

**The answer is 1 page or less**

**You must have a citation to either the text book or to another independent source. Please cite your source using either the APA or the MLA style. Internet sources such as those having "Fool", "opedia", "For Dummies" etc. are not acceptable**

Expert Solution

Itemized deductions are deductions that permit taxpayers who qualify to deduct more from their adjusted gross income than they could using the standard deduction. Complicated rules govern which goods and services, contributions and other expenses qualify as legitimate. The specific deductions that are allowed are outlined by the Internal Revenue Service(IRS) and include such expenses as mortgage interest, charitable gifts and medical expenses.

To find your taxable income, you must subtract the standard or itemized deduction from your Adjusted Gross Income (AGI). To be blunt, these deductions are our friends because they lower the amount of taxes that we have to pay.

Itemized deductions are comprised of various types of certain expenses that you incur throughout the year (things that are—surprise, surprise—“tax-deductable”). If the total amount of these expenses is greater than the standard deduction amount, you should itemize instead of taking the standard deduction.

The most common expenses that qualify for itemized deductions include:

Home mortgage interest
Property, state, and local income taxes
Investment interest expense
Medical expenses
Charitable contributions
Miscellaneous deductions

The above mentioned are the itemized deductions

ekkarill92 answered 1 year ago

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