CRS: The 2/37ths Limitation on Itemized Deductions
OBBBA Provision Limiting the Tax Benefits of the Charitable Contribution Deduction
The Congressional Research Service has issued a short “Insight” piece titled The 2/37ths Limitation on Itemized Deductions. here is the introductory paragraph:
In July 2025, as part of the FY2025 reconciliation law (P.L. 119-21), Congress enacted a new limitation on itemized tax deductions for high-income taxpayers. This Insight describes itemized tax deductions, explains how the new limitation works, and analyzes the limitation’s effects.
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