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Itemized deductions are specific expenses that tax laws allow you to subtract from your gross income in order to decrease your taxable income. They include some common expenses such as mortgage interest, property, state, and local tax, and charitable contributions. To itemize these deductions, taxpayers have to use Form 1040, Schedule A.

Taxpayers have two choices: They can either take a standard deduction or itemize deductions. The standard deduction is a fixed amount, depending on the filing status, that reduces the amount of income on which you're taxed. The decision to choose itemizing over standard deduction thus depends on whether the total itemized deductions will exceed the relevant standard deduction.

Certain situations make itemizing deductions more advantageous. These circumstances might include: \n1) Large medical and dental expenses: If total unreimbursed medical and dental expenses exceed 7.5% of adjusted gross income, taxpayers can deduct the portion above this percentage. \n2) Interest and taxes on home: If taxpayers have large mortgage or home equity loan interest, or big property taxes on their home, these could exceed the standard deduction. \n3) Donation to charity: Significant charitable contributions can also push total deductions over the standard deduction. \n4) Unreimbursed employee expenses: Such as business travel, job education, etc. These can only be deducted if they and other miscellaneous deductions exceed 2% of adjusted gross income.