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Video: What Are Itemized Tax Deductions?

Updated for Tax Year 2016


OVERVIEW

Itemized tax deductions can help save you even more money during tax season if your deductions exceed the standard amount. Learn about itemizing your tax deductions with help from TurboTax in this video on annual tax filing.


Video transcript:

Hi, I'm Arye from TurboTax with some helpful information about itemized tax deductions. 
 
The IRS gives you two different options when it comes to claiming deductions on your tax return. You can take the standard deduction or you can itemize your deductions. 
  • The standard deduction is a flat amount set by the IRS for each filing status that you can deduct from your taxable income. The standard deduction is simple, but may not allow you to maximize your tax savings.
  • Itemized tax deductions are individual expenses you can claim to decrease your taxable income. Added up together, they can add up to more than your standard deduction and potentially save you a lot on your taxes. 
There are a wide range of deductible expenses such as mortgage interest, state and local property and income taxes, medical expenses and charitable contributions. Total your eligible expenses up and compare that total to the standard deduction. 
 
You should only itemize your deduction if it ends up higher than the standard deduction.
 
If you decide to itemize, you'll need to fill out a Schedule A attachment with your tax return. Note that you'll need to file on a standard Form 1040, as forms 1040EZ and 1040A don’t allow itemized deductions.

With TurboTax, we’ll ask simple questions and fill out the right forms for you.

For more information about this and other tax topics, visit TurboTax.com

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


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