Itemized deductions are specific expenses that taxpayers can list on their tax returns to reduce their taxable income. Instead of taking the standard deduction, individuals can choose to itemize deductions if their total eligible expenses exceed the standard amount. Common itemized deductions include mortgage interest, property taxes, and certain medical expenses. To claim itemized deductions, taxpayers must keep detailed records of their expenses and fill out Schedule A of the IRS Form 1040. This process can be beneficial for those with significant deductible expenses, as it may lead to a lower overall tax bill compared to taking the standard deduction.