itemized deduction

Definition

An incurred expense which reduces an individual's taxable income, in accordance with IRS regulations (specifically, such deductions are usually limited to 2% of adjusted gross income). Examples include mortgage interest, state and local taxes, charitable gifts, and medical deductions.

Use itemized deduction in a sentence

There was some itemized deduction that went on and I had to explain to my friend that it was not a bad thing.

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The itemized deduction was useful to us as it reduced our tax burden significantly, we appreciated the money we saved.

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Buying a home is often going to create greater itemized deductions because of mortgage interest,points and property taxes and will be great benefit to a tax payer.

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1040-NR-EZ Form AMT