Itemizing deductions

[SwapnaM]

The "One Big Beautiful Bill Act" (OBBBA) brings several changes to itemized deductions.

1. State and Local Tax (SALT) Deduction

• The limit on how much you can deduct for state and local taxes (property, income, or sales taxes) is temporarily increased from the previous $10,000 cap to $40,000.
• Will increase by 1% annually through 2029.
• In 2030, the limit reverts back to $10,000 unless Congress passes new legislation.
• The new cap is subject to an income-based phase-out for taxpayers with a modified adjusted gross income over $500,000, where the cap is gradually reduced until it reaches the original $10,000

. Gambling Losses

• Starting in 2026, the deduction for gambling losses will be limited to 90% of gambling winnings (previously 100%)

The TurboTax blog has a general overview of the changes in the new bill.

@SandyA Do you have any specific question related to Itemized deductions?