Is there a benefit to itemizing my income tax deductions rather than utilizing the standard deduction?
The short answer is, it depends. If you have sufficient qualifying deductions, it is possible that, by itemizing your deductions, you can reduce your taxable income in an amount greater than the standard deduction. Deductions that can be itemized include medical and dental expenses, state and local taxes, real estate mortgage interest, and charitable donations, but there are some limitations on the amount that can be deducted. For example, state and local taxes (property taxes, income taxes, sales tax, etc.) are limited to $10,000 as an itemized deduction (the "SALT Limitation"). Many individuals do not have sufficient qualified deductions in excess of the standard deduction.