The "One Big Beautiful Bill Act" (OBBBA) brings several changes to itemized deductions.
1. State and Local Tax (SALT) Deduction
- The limit on how much you can deduct for state and local taxes (property, income, or sales taxes) is temporarily increased from the previous $10,000 cap to $40,000.
- Will increase by 1% annually through 2029.
- In 2030, the limit reverts back to $10,000 unless Congress passes new legislation.
- The new cap is subject to an income-based phase-out for taxpayers with a modified adjusted gross income over $500,000, where the cap is gradually reduced until it reaches the original $10,000
. Gambling Losses
- Starting in 2026, the deduction for gambling losses will be limited to 90% of gambling winnings (previously 100%)
The TurboTax blog has a general overview of the changes in the new bill.
@SandyA Do you have any specific question related to Itemized deductions?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
