Why does it say that I maxed out at $10,000 for itemized deductions, when I don't have that much?

[KittyM]

The $10,000 max is for state taxes, such as withholding and real estate taxes.  Take a look at the state withholding on your W-2 and add your property taxes (if any) to that amount.  If the amount exceeds $10,000, then you are maxed out at this amount. 

If you are single, your standard deduction is $12,000 ($24,000 if married) and so the standard deduction would be chosen for you in preference over your itemized deductions of $10,000. 

Note:  If you have other itemized deductions, when adding them, this situation may change.

[Sharonfmckenna]

Even as the Head of the Household?  I thought the max was $18,650?

[SweetieJean]

@Sharonfmckenna 

You are looking at a post that is at least 2 years old.  See this for current figures;

Standard deduction amount for 2020-2021: How much is it? (msn.com)

[Sharonfmckenna]

Thank you for getting back to me.  So why is TurboTax stating I am limited to $10,000 when it should be $18,650?  I am flagged as Head of Household.  TIA.

[VolvoGirl]

The SALT Deduction is limited to 10,000.

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.

Then all your deductions have to be more than the Standard Deduction to be used.

For 2020 the standard deduction amounts are:

Single 12,400 + 1,650 for 65 and over or blind (14,050)

HOH 18,650 + 1,650 for 65 and over or blind

Joint 24,800 + 1,300 for each 65 and over or blind

Married filing Separate 12,400 + 1,300 for 65 and over or blind

[JB164]

Then the message should state that, ie change the message (in Turbotax Deluxe 2022)

from

Looks like you've maxed out the federal 10,000 amount for itemized deductions.

to

Looks like you've maxed out the federal 10,000 amount for itemized STATE TAX deductions.

Otherwise it's misleads one to think they are out of luck with Schedule A.

[bobdrad]

Because it's not about deductions for state taxes, it's about the maximum state tax deduction on itemized deductions for federal taxes. Regardless, I do agree the statement is contradictory and misleading. It simply says "Looks like you've maxed out the federal 10,000 amount for itemized deductions" but you've only maxed out one component of itemized deductions - the SALT portion.