Which of the following best describes itemized deductions?

Itemized deductions refer to specific expenses that taxpayers can deduct from their total income to reduce their taxable income. These deductions include various categories such as medical expenses, state and local taxes, mortgage interest, and charitable contributions, among others. When taxpayers itemize, they detail each of these specific expenses on their tax return, which must exceed the standard deduction threshold for it to be beneficial. This practice allows individuals to potentially lower their overall tax liability by accounting for actual expenses incurred throughout the tax year.

The other options do not accurately define itemized deductions. While a standard deduction is a fixed amount set by the IRS based on filing status, itemized deductions involve various specific expenditures. Furthermore, expenses unrelated to tax—for example, personal living costs—do not contribute to itemized deductions and would not provide any tax benefits. Lastly, referring to itemized deductions as a type of standard deduction is inaccurate because they represent separate approaches to reducing taxable income rather than one being a form of the other.