Summary  
This chapter covers how to aggregate categorized numerical inputs and apply conditional caps and exclusions using conditional logic to compute a final total.

General domain of usage  
Personal finance and tax deduction calculations.

# The Three Buckets That Make Itemizing Worth It

If you're going to beat the standard deduction, it almost always comes down to three categories. Most people who itemize do it because of one or more of these.

## 1. Mortgage Interest

You can deduct the **interest** paid on a home loan up to a principal of **$750,000** (for loans taken after Dec 2017).

Only the interest — not the principal portion of your payment. In the early years of a mortgage, interest is most of your payment, which is why new homeowners often suddenly switch to itemizing.

## 2. SALT (State And Local Taxes)

You can deduct **state income tax, local tax, and property tax** — but the total is capped.

For years, that cap was a brutal **$10,000**. Under the **One Big Beautiful Bill Act**, the cap jumped to **$40,400** (joint filers, 2026) — with a phase-out for high earners (MAGI above ~$505,000) and a scheduled reset back to $10,000 in 2030 unless extended.

Translation: if you live in a high-tax state and own property, you can finally deduct most or all of what you pay. The cap matters way less than it used to — unless you're a very high earner or filing married-separately (where the cap is halved).

## 3. Charitable Contributions

Donations to **qualified 501(c)(3) organizations** are deductible. Cash, goods, or appreciated stock.

What's **not** deductible:

- The value of your time volunteering;
- Money given directly to an individual (most GoFundMes);
- Political campaign donations.

For donations over $250, keep the written acknowledgement from the charity.

Which of these can NOT be claimed as a charitable deduction?

Taxes For People Who Hate Taxes is built for the human who just wants to stop overpaying, stop panicking in April, and stop nodding along when someone says "marginal rate" like it means something. No jargon, no finance-bro lectures — just the stuff that actually saves you money.


The foundation. We kill the most expensive myths in personal finance — including the one that makes people turn down raises — and show how brackets, deductions, and credits really behave. You'll finish this section knowing what 90% of taxpayers get wrong, and where the easy savings hide above and below the line.


This is where the real money lives. You'll learn how holding a stock for one extra day can cut your tax bill in half, the legendary 0% capital gains bracket nobody talks about, the right order for filling tax-advantaged accounts (with the HSA spotlight as the quiet king of all accounts), and how to harvest investment losses without tripping wash sale rules.


The practical section. How to tune your paycheck so the IRS doesn't get a free loan, when quarterly taxes apply and how to dodge them with a withholding trick, state tax moves that actually pay off, choosing between TurboTax / EA / CPA / CFP, what an audit really looks like, and a full year-end checklist that ties the whole course together.


The Big Itemized Deductions — Mortgage, SALT, Charity

The Three Buckets That Make Itemizing Worth It

1. Mortgage Interest

2. SALT (State And Local Taxes)

3. Charitable Contributions

1. A married couple paid $28,000 in state income tax and $14,000 in property tax in 2026. Under the new SALT cap of $40,400 for joint filers, what's the maximum they can deduct on their federal return? Enter the dollar amount, no symbols.

2. Which of these can NOT be claimed as a charitable deduction?