What is a key factor determining a taxpayer's ability to itemize deductions?

The ability to itemize deductions largely depends on a taxpayer's filing status and income level. These factors influence the amount and type of deductions available to the taxpayer, as well as the thresholds that may apply to certain deductions, such as medical expenses and miscellaneous itemized deductions. For instance, high-income taxpayers may find that their total itemized deductions are limited due to income phaseouts, while filing status can impact the standard deduction amount a taxpayer can claim.

In contrast, individual savings accounts, the type of business owned, and investment income do not primarily determine whether a taxpayer can itemize deductions. Investment income may affect the tax rate or tax liability but does not govern the decision to itemize vs. take the standard deduction. Similarly, having a particular type of business or individual savings accounts does not inherently restrict or enable a taxpayer's ability to itemize deductions.