Itemized deductions are expenses that taxpayers can claim on their income tax returns, which reduce the amount of income that is subject to taxation. Common examples include mortgage interest, state and local taxes, medical expenses, and charitable contributions. Taxpayers typically choose between claiming the standard deduction and itemizing their deductions, and will opt for the method that results in the lower tax bill. Be aware that itemized deductions are subject to various limitations and thresholds, particularly for high-income earners.