Itemized Deductions

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Itemized Tax Deductions for Individuals: Data Analysis Sean Lowry Analyst in Public Finance February 12, 2014 Congressional Research Service 7-5700 www.crs.gov R43012 CRS Report for Congress Prepared for Members and Committees of Congress Itemized Tax Deductions for Individuals: Data Analysis Summary Reforming or limiting itemized tax deductions for individuals has gained the interest of policymakers as one way to increase federal tax revenue, increase the share of taxes paid by higher-income tax filers, simplify the tax code, or reduce incentives that might lead to inefficient economic behavior. However, limits on deductions could cause adverse economic effects or changes in the distributional burden of the federal income…show more content…
However, certain combinations of deduction limits may shift some tax filers to claim the standard deduction instead of itemizing. In this case, the revenue increase by limiting itemized deduction would be partially offset by more tax filers claiming the standard deduction. Congressional Research Service Itemized Tax Deductions for Individuals: Data Analysis Contents Introduction...................................................................................................................................... 1 An Overview of Itemized Tax Deductions ...................................................................................... 1 Analysis of Tax Data........................................................................................................................ 2 Who Claims Itemized Tax Deductions? .................................................................................... 2 Analysis of Selected Deductions ............................................................................................... 4 Which Itemized Deductions Contribute Most to Revenue Loss? .................................................... 7 Policy Implications .......................................................................................................................... 8 Figures Figure 1. Shares of Tax Itemizers and Itemized Deductions Claimed, by Adjusted Gross Income (AGI),

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