What are itemized deductions allowed on Schedule A for?

Itemized deductions on Schedule A are specifically designed to reduce a taxpayer's taxable income. This means that eligible expenses can be subtracted from a taxpayer's total income, thereby lowering the amount of income that is subject to federal income tax. Medical expenses, state and local taxes, mortgage interest, and charitable contributions are examples of the types of expenses that can be included as itemized deductions.

By minimizing the income that is subject to tax through itemized deductions, taxpayers can potentially decrease their overall tax liability. This is especially beneficial for those whose total eligible deductions exceed the standard deduction, allowing them to optimize their tax situation.