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there's that $10k limit that you slam into when trying to itemize This is...incompletely stated...the only $10,000 limit when itemizing is on SALT taxes (state
by gamblor956 3y ago
there's that $10k limit that you slam into when trying to itemize
This is...incompletely stated...the only $10,000 limit when itemizing is on SALT taxes (state and local income and property taxes). There is no $10,000 limit on deductions in general.
And indeed, the IRS itself states "For 2023, as in 2022, 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act." (https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023#:~:text=For%202023%2C%20as%20in%202022,Tax%20Cuts%20and%20Jobs%20Act https://www.irs.gov/newsroom/irs-provides-tax-inflation-adju....)
The increase in the standard deduction means that it became more beneficial for many taxpayers that used to itemize. But many things that could be itemized in the past can no longer be itemized, which is probably what affected you (however, due to the way the TCJA was written, that prohibition only applies until 2025 unless extended by Congress, which will depend on who wins the 2024 election).