Itemized Deduction Limits

Itemized deduction limits refer to caps that restrict the total amount of certain deductions you can claim on your tax return. These limits are set by the IRS to prevent excessively high deductions from reducing taxable income too much. For example, the deductibility of certain expenses like certain medical costs, state and local taxes, or mortgage interest may be limited based on your income level or specific rules. Understanding these limits helps you plan your deductions effectively, ensuring you maximize your tax benefits within the permissible thresholds.