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
- Casualty and theft losses of income-producing
- Gambling losses—line 28.
For more information on itemized deduction limitations, see Publication 17 and the Schedule A instructions.