question.jpgIn Federal Income Tax

How do I figure out my itemized deductions?

Instead of taking the standard deduction, you can itemize your deductions, calculating all of your individual expenses for the year. You should calculate these by going through the various categories of deductible expenses and calculating your individual expenses for each category. Where applicable, you should then apply any limits, such as the 2% reduction or the 2% floor for miscellaneous expenses. Finally, your itemized deductions can be subtracted from your adjusted gross income to determine your taxable income (the amount of income used to calculate what your tax burden is).