New itemized deduction limitation will affect high-income individuals next year - WCS - Accounting Firm in Cecil County MD

New itemized deduction limitation will affect high-income individuals next year - WCS - Accounting Firm in Cecil County MD

Beginning in 2026, taxpayers in the top federal income tax bracket will see their itemized deductions reduced. If you’re at risk, there are steps you can take before the end of 2025 to help mitigate the negative impact. The new limitation up close Before the Tax Cuts and Jobs Act (TCJA), certain itemized deductions of high-income taxpayers were reduced, generally by 3% of the amount by which their adjusted gross income exceeded a specific thresh…