Itemizing deductions

SandyA — Wed, 06 Aug 2025 16:16:03 GMT

Re: Itemizing deductions

SwapnaM — Wed, 06 Aug 2025 16:36:45 GMT

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

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

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?