Beginning in 2026, a permanent $1,000 deduction ($2,000 for married filing jointly) for non-itemizers is created. For those who itemize, the first 0.5% of the modified Adjusted Gross Income will not be deductible.
In general, those who do not itemize should consider deferring contributions to 2026 while some taxpayers who itemize should consider accelerating contributions to 2025 to maximize their deductions.
