Your itemized deductions are no longer limited, if your adjusted gross income (AGI) is over a certain amount.
The new law suspends the overall limit on itemized deductions for tax years 2018 through 2025. Your AGI is your gross income less certain adjustments to your income and can be found on your tax return.
Before 2018, your itemized deductions were limited, if your AGI was more than the following amounts:
- $156,900 for married filing separately
- $261,500 for single
- $287,650 for head of household
- $313,800 for married filing jointly or qualifying widow(er)
In the past, if your AGI was more than the applicable AGI amount, you reduced your overall itemized deduction amount by completing the Itemized Deductions Worksheet.
|The new tax law eliminates the AGI limitations on the total itemized deduction amount.|
How will this affect me?
Jayden and Ella are both doctors and file joint income tax returns. Their 2018 AGI is expected to be approximately $550,000 and they expect to have total itemized deductions of approximately $90,000. They’ll not need to reduce their total itemized deductions on their 2018 tax return based on their expected AGI.