Glossary: Itemized deduction (2026-07-18)

Location: Glossary: Itemized deduction

What was wrong: After the June 2026 fix to this entry's definition, its worked example still applied the old $10,000 SALT cap to an explicitly 2026 scenario: "$8,000 in state and local taxes (under the $10,000 SALT limit)." That contradicted the entry's own definition, which had already been corrected to the raised cap.

What it now says: The example now reads the 2026 SALT cap of $40,400 from the reference registry, and the definition was moved from the 2025 cap to the 2026 cap, so the entry is consistent for 2026 end to end. The worked math is unchanged: $8,000 of SALT is fully deductible under either cap, so the $25,000 itemized total and the roughly $2,140 tax saving still hold. The history that the cap rose from a $10,000 TCJA floor is accurate and is kept.

Why it was wrong and how it was caught: The June 20, 2026 correction repaired the definition but not the example in the same entry, so one live number stayed a year and a policy behind. Caught in the full-site factual audit on July 18, 2026. Both figures now interpolate from the registry rather than sitting in the prose.

Primary source: 26 U.S.C. 164(b)(7), state and local tax deduction limit ($40,400 for 2026), as amended by the One Big Beautiful Bill Act (Pub. L. 119-21) (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section164&num=0&edition=prelim)