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Certain deduction types only allow you to deduct the amount greater than a specified percentage of your adjusted gross income (AGI). So as long as your numbers are entered correctly, you do not need to worry about it.
Using a simplified example for the other miscellaneous itemized deductions: adjusted gross income is $100; 2% of AGI is $2; total itemized deductions subject to the 2% limitation is $7; ALLOWABLE itemized deductions subject to the 2% limitation is $5 ($7 total less the $2 [2% of AGI]).
To see WHY specific deductions only give you a limited portion of the amount you entered you will need to go into the Forms side of the program. To do this, look on the left side of the blue bar at the top for a paper icon with the word Forms under it (you have to click on the word Forms as the icon is not an active link). Now in the top right side you will see to icons/links: Open Form & Errors. Click on open Form. In the search box of the dialogue box that opens type "itemized" and in the results you will see "Schedule A: Itemized deductions" as the 1st option under the federal return: select it and click Open Form. Assuming you already entered in all of your deductions, you will see the form filled out with your expenses entered, the percentage allowed, and the amount you can claim for your return for each category of expense. When you are finished and want to return to the Step-by-Step/Interview side of the program, simply go back to the top of the page where you had clicked on the Forms link: you will see it now says Step-by-Step with a 1 and 2 in bubbles. Click that to return back to the interview side where you had left off.
Your entire mortgage interest may not be deductible if you used any portion of the loan on something besides buying, building, or improving your house or if your outstanding mortgage principal exceeds $750,000, or $1 million of your home was purchased before December 15, 2017.
There is also a $10,000 tax limit which applies to all state and local taxes paid in 2021. In addition to the property tax on your home, it would include any state and local taxes withheld on your 2021 W-2s and any state tax you had due in 2020 that you paid during 2021. It would also include sales tax if that is greater than your income tax and personal property taxes on vehicles.
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