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In individual taxation, deductions can be done through either a standard deduction set by the government or itemized deductions, known as Schedule A. Itemizing deductions is worth it if they exceed $12,000. Charitable contributions are one of the key items that can be deducted, along with other categories such as medical expenses, interest, taxes, theft, and casualty losses. Donations to qualified charitable organizations are tax deductible, while free gifts like a doughnut are not.