Definition:
You may choose to itemize when it comes to your taxes. This basically means that you are subtracting a percentage of certain things from your taxes. In order to itemize you will need to use the 1040 form. If you are using tax preparation software or going to an accountant, they should be able to help you determine which items are best for you. Commonly itemized deductions include mortgage interest, medical bills, charitable donations, and student loan interest. It is important to remember that you do not deduct the entire amount of these items, but rather a percentage of them.
