Final answer:
Itemized deductions such as medical expenses, job-related expenses, charitable contributions, and mortgage interest can reduce your taxable income, consequently affecting the amount of income tax you owe. These deductions must adhere to specific rules within the tax code and can lead to significant tax savings.
Step-by-step explanation:
Various types of itemized deductions can affect your taxable income, such as medical expenses, job-related expenses, charitable contributions, and mortgage interest. These deductions are outlined in the tax code and allow you to reduce the amount of income that is subject to tax.
For example, medical expenses that exceed a certain percentage of your adjusted gross income can be deducted. Job-related expenses may be deductible if they are necessary for your employment and are not reimbursed by your employer. Charitable contributions can also be deducted if they are made to qualified organizations, and the interest you pay on your mortgage for your primary residence may also be deductible.