How can $22,525 of total taxes paid be my state and local real estate, personal property, and other taxes deduction when this deduction limited to $10,000

[DoninGA]

State and local tax (SALT) deduction limit increased. The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately)

[DianeW777 · Accepted solution]

The deduction on itemized deductions has been increased under the One Big Beautiful Bill Act (OBBBA) passed this year.

• STATE AND LOCAL TAXES ... any taxable year beginning in calendar year 2025, $40,000.

Key details regarding the 2025 SALT deduction:

• Married Filing Separately: The cap for 2025 is $20,000.
• Income Phase-Out: The $40,000 cap is reduced for taxpayers with a modified adjusted gross income (MAGI) over $500,000 ($250,000 for married filing separately).
• Phase-Out Floor: The deduction cap will not drop below $10,000 ($5,000 for married filing separately) regardless of income level.
• Duration: The $40,000 cap is effective from 2025 through 2029, increasing by 1% annually, before returning to $10,000 in 2030.
• Requirement: To claim this deduction, you must itemize your deductions on Schedule A
  • Taxes 2025-2026: OBBBA and How it Impacts You