Why don't you get the full amount of an item when you itemize it??

Answer 1

If it is a deduction it reduces the amount of taxable income by the full amount, but the net effect of your taxes is that amount multiplied by your marginal tax rate. For example, assume that you make $50,000 and you are taxed at 22% your tax would be 11,000. Now assume that you deduct a $300 charitable donation. The full amount is deducted from your income so now you are taxed on $49,700 ($50,000 - $300) at 22%, which is $10,934

The difference is $66, which is the same as $300 * 22%.

If it is a tax credit it is subtracted fromy our taxes and you get 100% of the value.

Answer 2

Some itemized deductions are subject to AGI limitations. For example, employee business expenses are subject to a 2% limitations and medical expensed are subject to a 7.5% limitation. Any deductions allowed will reduce your taxable income. The tax reduction will depend upon your tax bracket -- anywhere between 0% and 35%.

Answer 3

Mortgage interest, real estate taxes, charitable contributions, etc. can reduce your taxable income by their full amount. They are deductions, not credits, and therefore do not reduce your taxes dollar for dollar.

Deductions like medical expenses and miscellaneous itemized deductions first have to meet a threshold. Medical expenses have to exceed 7.5% of your AGI. Miscellaneous itemized deductions like unreimbursed employee expenses, tax prep fees, union dues, etc. have to exceed 2% of your AGI. Amounts above the threshold may be deducted.