What does it mean to 'itemize deductions' instead of taking the standard deduction?
Reading time...
Explanation
Taxpayers can choose to itemize deductions (Schedule A) instead of taking the standard deduction when their eligible expenses, mortgage interest, state/local taxes (SALT), charitable donations, and medical expenses exceeding 7.5% of AGI, add up to more than the standard deduction.
Tax brackets are marginal, meaning only the income within each bracket is taxed at that rate. Moving into a higher bracket does not increase the tax rate on all your income.