Lesson: Itemized Deductions

In this lesson, Nick Palazzolo, CPA, takes a deep dive into itemized deductions and the details of Schedule A. He starts with a light-hearted invitation to get refreshed before plunging into the complexities of itemized deductions, which allow taxpayers to reduce their taxable income on their federal returns. Nick clearly explains categories such as medical and dental expenses, taxes paid, and interest, and how they relate to the standard deduction. He conveys changes brought by the Tax Cuts and Jobs Act, including the threshold required for medical deductions and new limitations on state and local tax deductions. The lesson is packed with examples demonstrating how to calculate potential deductions, emphasizing the importance of understanding the timing and legal obligations relating to these expenses. Nick’s approachable style makes this topic, which is essential for the CPA exam, engaging and understandable.