Question

Which of the following are examples of itemized deductions?

1) Medical expenses
2) Taxes
3) Investment Interest
4) Home mortgage interest
5) Charitable Contributions
6) Miscellaneous Itemized Deductions

Answer 1

Itemized deductions are specific expenses that can be subtracted from a taxpayer's adjusted gross income. Examples include medical expenses, taxes, home mortgage interest, charitable contributions, and miscellaneous itemized deductions.

Step-by-step explanation:

Itemized deductions are specific expenses that can be subtracted from a taxpayer's adjusted gross income, reducing their overall taxable income. Some examples of itemized deductions include:

1. Medical expenses: This includes expenses such as doctor visits, prescribed medication, and hospital stays.
2. Taxes: This includes state and local income taxes, property taxes, and sales taxes.
3. Home mortgage interest: This is the interest paid on a loan used to purchase or improve a home.
4. Charitable contributions: This includes donations made to qualified organizations.
5. Miscellaneous Itemized Deductions: This includes expenses such as unreimbursed employee expenses, tax preparation fees, and investment advisory fees (although this category has been suspended for tax years 2018-2025).