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If you itemize, you can deduct these expenses: Bad debts. Canceled debt on home. Capital losses. Donations to charity. Gains from sale of your home. Gambling losses. Home mortgage interest. Income, sales, real estate and personal property taxes.
Miscellaneous Itemized Deductions Subject to 2% AGI Limit For tax years beginning before 2026, an individual, estate, or trust may not claim any miscellaneous itemized deductions that were subject to the two-percent-of-adjusted-gross-income (AGI) limit ( Code Secs. 67 and 212; Reg. 1.67-1T).
Overall limit As an individual, your deduction of state and local income, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).
In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the aggregate of such deductions exceeds 2 percent of adjusted gross income.
Overall limit As an individual, your deduction of state and local income, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately). You may be subject to a limit on some of your other itemized deductions also.
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Taxpayers can deduct only the amount of unreimbursed medical and dental expenses that exceeds 7.5% of their Adjusted Gross Income (AGI). The standard mileage rate allowed for out-of-pocket expenses for a car when used for medical reasons can be found in the Volunteer Resource Guide, Tab F, Deductions.
Your adjusted gross income (AGI) is your total (gross) income from all sources minus certain adjustments such as educator expenses, student loan interest, alimony payments and retirement contributions. If you use software to prepare your return, it will automatically calculate your AGI.
This means that you can only deduct the amount that exceeds 7.5% of your AGI. Therefore, the lower your AGI is, the more of your medical and dental expenses you can deduct. Even some of your adjustments to income are subject to AGI limitations despite the fact that those deductions are necessary to calculate your AGI.

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