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14159: 1040 - Limitations on Itemized Deductions (Drake17 and prior)


1040 Individual Generally

Why are my itemized deductions being limited? 
 

In Drake Tax, if the AGI on a tax return exceeds the limit for itemized deductions (see below), a literal reading 'SEE WK_A' will produce on line 29 of the Schedule A in the view mode of the return. The WKs Sch A - 'Itemized Deductions Worksheet - Line 29' , will produce showing the calculation for line 29 of the Schedule A. 

Per Publication 17:  

Who is subject to limitation? 

You are subject to the limit on certain itemized deductions if your adjusted gross income (AGI) is more than $313,800 if married filing jointly or Schedule A (Form 1040) qualifying widow(er), $287,550 if head of household, $261,500 if single, or $156,900 if married filing separately. Your AGI is the amount on Form 1040, line 38.

Which deductions are limited? 

The following Schedule A (Form 1040) deductions are subject to the overall limit on itemized deductions.

  • Taxes paid—line 9.
  • Interest paid—lines 10, 11, 12 and 13. 
  • Gifts to charity—line 19.
  • Job expenses and certain miscellaneous deductions—line 27.
  • Other miscellaneous deductions—line 28, excluding gambling and casualty or theft losses.

Which deductions are NOT limited? 

The following Schedule A (Form 1040) deductions aren't subject to the overall limit on itemized deductions. However, they are still subject to other applicable limits.

  • Medical and dental expenses—line 4.
  • Investment interest expense—line 14.
  • Gifts by cash or check that you elect to treat as qualified contributions—included on line 16.
  • Casualty and theft losses of personal use property—line 20.
  • Casualty and theft losses of income-producing property—line 28.
  • Gambling losses—line 28.

For more information on itemized deduction limitations, see Publication 17 and the Schedule A instructions


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