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