Changes to Itemized Deductions in 2021?

Forum|Forum|4 years ago
February 22, 2022
3 replies
46 views

Working on my taxes for 2021 and TurboTax is selecting the standard deduction for me, which is odd because we've used the itemized deductions for the past 6+ years.

Looking at a few of our bigger deductions, our property taxes are $10k+ (I think there's a $10k cap), mortgage insurance is $6k+, and local/state income taxes paid are $4k+. Putting just these items together puts us over the standard deduction of $18,800.

Is there a new cap on other deductions that I missed? We re-financed our home last January and our mortgage changed companies part way through the year so I'm just making sure I didn't mis anything while entering info.

Thanks,
Jamie

TurboTax Deluxe Online

Critter-3

Level 15

The RE taxes + state taxes combined are limited to 10,000 so add the 6K mtg int to it and 18800 is larger.

JKostic10Author

Level 2

Interesting, thanks for the response, wasn't aware of that.

We paid about double in mortgage insurance last year so I'm guessing that's the difference.

PattiF

Alumni - Intuit

There is not a new cap on the other deductions. The cap is $10,000 which includes real estate taxes and state and local taxes. Mortgage interest would increase the itemized deductions to over $16k. Head of Household filing status has a standard deduction of $18,800.

The mortgage interest that you paid may have decreased since you refinanced last year. If you have a lower interest rate now, this could account for not having enough deductions to be higher than the standard deduction.

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