SALT

[khalfin]

I thought SALT only limited the deduction for State & Local taxes. It is not considering mortgage interest and charitable deductions and forcing me to take the standard deduction.

Please help.

[Vanessa A]

What is your filing status?  Is your standard deduction greater than your Itemized Deduction?

Is your mortgage interest limited due to being more than $750k?

Itemized expenses include mortgage interest,  charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your itemized deductions. 

The 2023 Standard Deductions are as follows:

• Married Filing Joint (MFJ)              $27,700
• Married Filing Separate (MFS)      $13,850
• Head of Household (HOH)             $20,800 
• Single                                                     $13,850                                

Blind or over 65 and MFJ or MFS add $1,500

Single or HOH if blind or over 65 add $1,850

Standard versus Itemized Deduction

[khalfin]

Hello and thank you for your reply. Here is the info:

This is for someone in California.

Mortgage interest           32893

Property Tax                     11534

Donations to Charity      13771

Home Office Exp                 845

Total                                   59043

Standard Deduction is $27,700.

Turbo Tax is using the standard deduction.

Regards,

Kippi

[MonikaK1]

The deduction for state and local taxes is currently limited to $10,000.

There are several reasons you might not be seeing mortgage interest on Schedule A after entering it. You can revisit your entries in the mortgage interest questionnaire to confirm, for example, that you identified the loan as being secured by your home, that the loan funds were used to purchase or improve your home, the dollar amount of interest entered was correct, and that the loan principal was entered and didn't exceed applicable limits ($750,000 for loans originated December 16, 2017, or later).

You can preview your return before filing to find out how your taxes were calculated and review the schedules. See here for details. 

Please see this article and this one for more information on home mortgages from TurboTax. 

See IRS Publication 936 for more information on mortgage interest deductions.