Updated October 29, 2026. Quick answer: Worksheet 2-6 in Publication 505 (2026) reduces itemized deductions for high-income filers. If income (adjusted gross income less the business income and Schedule 1-A deductions) is over $768,700 joint, $640,600 single or head of household, or $384,350 separate, the deduction falls by 5.4% of the smaller of the itemized total or the excess. Below the threshold the deduction is not limited.
What this worksheet is for
The What’s New section states the rule: “For 2026, your overall itemized deductions may be reduced. If your taxable income is more than the following amounts, your itemized deductions will be reduced by 5.4% of the lesser of (1) your total itemized deductions or (2) the amount your taxable income is more than the following amounts.” The thresholds are “$768,700 if Married filing jointly or Qualifying surviving spouse,” “$640,600 if Head of household or Single, or” “$384,350 if Married filing separately.” The publication adds “The limitation will be applied after any other applicable limitations on your itemized deductions and will not apply when figuring any QBID.” Charitable gifts first pass through the 0.5% floor on Worksheet 2-5.
The thirteen lines
| Line | What it asks |
|---|---|
| 1 | “Enter the amount from line 7 of your 2026 Estimated Charitable Contribution Deduction Worksheet (Worksheet 2-5)” |
| 2 | “Enter the amount of total estimated itemized deductions not included on line 1” |
| 3 | “Add lines 1 and 2” |
| 4 | “Enter the amount from line 1 of your 2026 Estimated Tax Worksheet (Worksheet 2-1)” |
| 5 | “Enter the amount from line 2b of your 2026 Estimated Tax Worksheet (Worksheet 2-1)” |
| 6 | “Enter the amount from line 2c of your 2026 Estimated Tax Worksheet (Worksheet 2-1)” |
| 7 | “Add lines 5 and 6” |
| 8 | “Subtract line 7 from line 4” |
| 9 | “Enter $768,700 if married filing jointly or qualifying surviving spouse; $640,600 if head of household or single; or $384,350 if married filing separately” |
| 10 | “Is the amount on line 8 more than the amount on line 9?” “No. Your deduction isn’t limited.” Otherwise subtract line 9 from line 8. |
| 11 | “Enter the smaller of line 3 or line 10” |
| 12 | “Multiply line 11 by 5.4% (0.054)” |
| 13 | “Total itemized deductions. Subtract line 12 from line 3.” |
Line 8 starts from adjusted gross income and subtracts only the qualified business income deduction (line 5) and the Schedule 1-A deduction (line 6). It does not subtract the itemized deductions, so it is a different figure from taxable income on the estimated tax worksheet.
A line reference to read carefully
The caution at the top says your deductions may be reduced if taxable income is more than the amount “shown on line 10 for your filing status”. The filing-status amounts are printed on line 9, and line 10 is the excess. This page follows the numbered lines as printed: compare line 8 with line 9.
An example with invented numbers
Illustration, not an IRS example. Computation inputs (invented): a married couple filing jointly with $20,000 of charitable amount after the floor, $60,000 of other itemized deductions and $900,000 of adjusted gross income.
| Line | Entry | Amount |
|---|---|---|
| 1 | Charitable amount from Worksheet 2-5, line 7 (invented) | $20,000 |
| 2 | Other estimated itemized deductions (invented) | $60,000 |
| 3 | Line 1 plus line 2 (computed) | $80,000 (computed) |
| 4 | Adjusted gross income (invented, married filing jointly) | $900,000 |
| 5 and 6 | Qualified business income and Schedule 1-A deductions | $0 |
| 8 | Line 4 minus line 7 (computed) | $900,000 (computed) |
| 9 | Threshold, married filing jointly | $768,700 |
| 10 | Line 8 minus line 9 (computed) | $131,300 (computed) |
| 11 | Smaller of line 3 and line 10 (computed) | $80,000 (computed) |
| 12 | Line 11 times 0.054 (computed) | $4,320 (computed) |
| 13 | Total itemized deductions: line 3 minus line 12 (computed) | $75,680 (computed) |
The excess over $768,700 is $131,300 and is larger than the $80,000 of itemized deductions. The smaller amount of $80,000 is multiplied by 5.4% so the couple loses $4,320 and keeps $75,680. With adjusted gross income at or below $768,700 the answer on line 10 is no and the whole itemized amount carries to line 2a.
Edition
This page reads Publication 505 (2026), Tax Withholding and Estimated Tax, “For use in 2026”, the file irs.gov served on 2026-10-29 (sha256 in the kit data). Worksheet numbers and line numbers belong to that edition, so check the number printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Starting from taxable income. Line 8 starts from adjusted gross income and removes only the business income and Schedule 1-A deductions.
- Applying the reduction to the excess instead of the lesser amount. Line 11 takes the smaller of the itemized total and the excess.
- Using the wrong threshold. The three filing-status amounts are different and married filing separately is the lowest.
- Skipping the charitable floor first. Line 1 comes from Worksheet 2-5, after the 0.5% reduction.
Related: Schedule A lines 17 and 18, the 2026 charitable deduction floor, the Schedule A SALT deduction limit, and the Form 1040-ES estimated tax worksheet.
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Answer againSources
- Publication 505 (2026), Tax Withholding and Estimated Tax: https://www.irs.gov/pub/irs-pdf/p505.pdf
- 2026 Form 1040-ES, Estimated Tax for Individuals (with instructions): https://www.irs.gov/pub/irs-pdf/f1040es.pdf
Read from the IRS documents linked above on October 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.