What is the main benefit of itemizing deductions?

Itemizing deductions enables taxpayers to individually list specific eligible expenses on their tax returns, which can potentially exceed the amount of the standard deduction. This allows for a more tailored approach to deductions. For instance, individuals with substantial medical expenses, mortgage interest, property taxes, or charitable contributions may find that the total of these itemized deductions surpasses the standard deduction available for their filing status. By doing this, taxpayers can reduce their taxable income more significantly, potentially leading to a lower overall tax liability.

The significance of this lies in allowing taxpayers to take full advantage of their qualifying expenses, thereby maximizing their deductions and minimizing taxable income, which is not possible with the flat standard deduction alone.