Richey May’s Inside the One Big Beautiful Bill Act video series is designed to help mortgage lenders and other industry-affiliated businesses understand what this sweeping legislation means in practice, not just in theory. Hosted by Kenny Burch, Director, Mortgage Banking Tax, the series features focused conversations with experts from Richey May’s Mortgage Banking Tax team, each examining a specific provision of the Act and its implications.
In this episode, Kenny is joined by Caden Magnuson, Senior Tax Associate, to examine updates to miscellaneous itemized deductions and Schedule A limitations under the One Big Beautiful Bill Act. While many of these provisions reflect extensions of prior law, new limitations on high-income taxpayers reintroduce planning considerations that had been dormant in recent years.
Key Takeaways from the Episode
- Miscellaneous itemized deductions remain suspended: Deductions previously subject to the 2% floor (such as tax preparation fees and unreimbursed employee expenses) will not return as originally scheduled.
- A new Schedule A limitation affects high-income taxpayers: Beginning in 2026, taxpayers in the top marginal bracket will see itemized deductions reduced based on a formula tied to income levels.
- The impact is concentrated at higher income levels: While many taxpayers may not feel a material change, high-net-worth individuals and business owners could see a meaningful reduction in usable deductions.
- Medical expense thresholds are stabilized: The adjusted gross income limit for deducting unreimbursed medical expenses is now permanently set at 7.5%, providing long-term clarity in that area.
- Planning becomes more important: Investment decisions, retirement contributions, and business elections may play a larger role in managing the practical impact of these new limits.
Overall, while the Act preserves much of the post-2017 framework, it reintroduces meaningful limitations for high-income individuals, making proactive planning essential.
Watch the full episode below to hear Kenny and Caden break down how miscellaneous itemized deductions and Schedule A limitations work under the One Big Beautiful Bill Act and what high-income taxpayers should be evaluating before 2026.
Continue the Conversation
This episode is part of the Inside the One Big Beautiful Bill Act series, which explores additional provisions shaping the mortgage banking tax landscape. Visit the series page to watch other episodes and stay current as new guidance continues to emerge.
If you have questions about itemized deductions, Schedule A limitations or any aspect of the One Big Beautiful Bill Act that may impact your organization, the Richey May Mortgage Banking Tax team is available to help.
