Itemization is the process of listing specific deductible personal expenses you paid during the year including but not limited to medical and dental care, state and local income taxes, real estate taxes, home mortgage interest, and gifts to charity. Such a list would appear on Form 1040, Schedule A, Itemized Deductions.
When you complete your list, you total the amount spent and compare the total with your standard deduction. Generally the larger of the two deductions, standard or itemized, will be the deduction to choose, since it will lower the amount of federal income tax you will owe.
