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Itemizing requirements Enter your expenses on the appropriate lines of Schedule A. Add them up. Copy the total amount to the second page of your Form 1040. This amount is then subtracted from your income to arrive at the final taxable income number.

You can also claim the credit for continuing education, certificate programs or separate classes you take to acquire or improve job skills, and it's available for an unlimited number of tax years.

When spouses file separately, both must use the same method of claiming deductions. That is, either both parties must itemize, or both parties must take the standard deduction. If you choose to itemize, it's important to know how to divide your deductions.

They include medical expenses, taxes, the interest you pay on your home mortgage, and donations to charity. Taxpayers who itemize add up all of their deductible expenses and subtract the total from their adjusted gross income to reach their taxable income.

To report your gambling losses, you must itemize your income tax deductions on Schedule A. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. The IRS doesn't permit you to ?subtract your losses from your winnings and report the difference on your tax return.

How can we split our itemized deductions? If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. In this situation, the other spouse should also itemize his or her deductions.

The difference between the standard deduction and itemized deduction comes down to simple math. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.