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what are itemized deductions well itemized deduction pertains to taxation generally individuals are taxed on their income the calculation of their income is generally gross income minus applicable deductions this yields your adjusted gross income so deductions are those amounts that are subtracted from what otherwise would be taxable income but because the government has identified these expenses these ways in which you have used your money or things for which you have paid that these should be paid with pre-tax dollars that they that the money should not be taxed before you use it for these expenses thus they Grant a deduction now with that being said deductions can either be taken individually and these are itemized deductions or you can take a standard deduction individuals who are able to track and keep up with the various deductions to which they are entitled May benefit from itemizing or taking their itemized deductions but most people will be better off to take what is known as