I get "max out fed. $10,000 for itemized deductions"... BUT per IRS "in 2022, no limit on itemized ded, as it was eliminated by Tax Cuts & Jobs Act". what am i missing?

[lauraungureanu]

I'm confused by the message I'm getting "Looks like you've maxed out the federal $10,000 amount for itemized deductions.
Your Standard Deduction is still a better outcome than itemizing." since IRS.gov states that "For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act" I'm confused.

[xmasbaby0]

There is a $10,000 cap on state, and local taxes paid  -- also referred to as SALT.   Even if your property tax, state and local  taxes , etc. add to more than $10K, you cannot deduct more.   So it is hard to reach the amount necessary to exceed your standard deduction in order to use itemized deductions.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[lauraungureanu]

Thanks for the quick reply,

I guess its the language used by TT that confused me ("Looks like you've maxed out the federal $10,000 amount for itemized deductions.")

It should say "you maxed out of the 10k state and local taxes deductions", NOT all itemized deductions, since one can have other additional deductions on top of that (like mortgage interest, charitable contributions,  etc)