What does "itemizing deductions" mean?

Itemizing deductions refers to the process of selecting and documenting specific deductible expenses on your tax return, instead of opting for the standard deduction. Taxpayers may choose this method if their total allowable deductions exceed the standard deduction amount. By itemizing, individuals can provide a detailed accounting of their expenses, such as mortgage interest, property taxes, medical expenses, and charitable contributions, which can lead to a lower taxable income and potentially higher tax refunds.

The other options do not accurately capture the essence of itemizing deductions. The second choice describes a scenario that does not align with how deductions work—it implies a restriction on the type of expenses claimed that does not exist in itemizing. The third option suggests a scenario where tax benefits are received automatically, which contradicts the need for detailed records that characterize itemizing. Lastly, the fourth choice implies unlimited claims, which is not the case, as there are specific limits and rules governing which deductions can be itemized.