Why is Turbo Tax only showing a 10 thousand dollar max deduction for itemized deductions, when IRS says no limitation?!

[jcsbabe]

For 2021, as in 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021 

[VolvoGirl]

That is SALT

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

see FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

Deductions that have been suspended for 2018-2025

https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

[jcsbabe]

Please explain why the IRS website shows no limitation. Please click on the link above.

[VolvoGirl]

See Schedule A instructions page A-3 Line 5

https://www.irs.gov/pub/irs-pdf/i1040sca.pdf

The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and 5c.

[jcsbabe]

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021 

[jcsbabe]

I'm seeing this on my Federal taxes.

[jcsbabe]

The 10K limit...

[VolvoGirl]

I think that refers to the total Itemized Deductions.  Or something else, not each kind of deduction.  Like there is still a over 7.5% of AGI limit on Medical.

[jcsbabe]

I'm asking about total itemized deductions on Federal Tax Return.

[VolvoGirl]

If it's giving you the Standard Deduction and  not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in  itemized deductions, choosing.  It should highlight that in the list, click on GO

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

How to change between the Standard Deduction and Itemized Deductions

https://ttlc.intuit.com/community/accessing/help/how-do-i-change-from-the-standard-deduction-to-item...

[jcsbabe]

Thank you for your time. None of your answers answer my question. I am not talking about Standard Deductions. I'm asking about Itemized deductions for Federal Taxes.

Maybe I'm not articulating correctly. I will call the IRS on Monday.

Please do not respond again.

Have a good one!