Automatically Switched from Standard Deduction to Itemized

[soulwinner10]

Hello,

I have always taken the standard deduction and this year TT sofware (premiere) automatically switched me to itemized. My itemized deductions of state/local taxes (a little over $12,445), property taxes ($7,226), and mortgage interest ($18,110) are over the $31,500 standard by $6,283. Last year I had a similar amount, but switching to itemized was not favorable. What changed this year with any tax laws that would make this possible? Thank You.

[LindaS5247]

It is likely due to the One Big Beautiful Bill (OBBB) changes to state and local tax deductions (SALT) caps. For 2025, because of the OBBB, the State and Local Tax (SALT) cap on these deductions has been substantially increased (from $10,000 to $40,000) for most filers.
 

Because this limit is so much higher, the amount you can deduct for state and local taxes  (income/sales tax + property taxes) is more likely to exceed the standard deduction for 2025 than it did last year.
 

[soulwinner10]

Yes, in TT it does state the OBBB increased the SALT to $40,000-you are correct. So, do you advise just to stick to the itemized deduction versus the standard based on this? Thank you.

[VolvoGirl]

Yes because the SALT limit increases from 10,000 to 40,000.  I always took the Standard Deduction but itemized for 2025.   I think there are some other changes for 2026 so I think I’ll be going back to the Standard Deduction next year.