# Itemized deductions: Retirement Figures vs PolicyEngine US

Oracle: PolicyEngine US 1.821.4. 20 scenarios, run through the shipped TypeScript tax engine.
Each scenario states the state income tax inside SALT, so these check the federal itemizing rules on their own.
Federal income tax is compared for the 2026 scenarios; past the base year the engine indexes brackets with the plan's
inflation rate and PolicyEngine with its CPI projection, so a later year differs by indexing on identical taxable income.

## I01 - Single 67, mortgage + property tax + charity, itemizes (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $33,250.00 | $33,250.00 | $0.00 |
| Taxable income | $115,250.00 | $115,250.00 | $0.00 |
| Federal income tax | $20,258.00 | $20,258.00 | $0.00 |

## I02 - Single 67, itemized just BELOW the standard deduction (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $17,700.00 | $17,700.00 | $0.00 |
| Taxable income | $34,850.00 | $34,850.00 | $0.00 |
| Federal income tax | $3,934.00 | $3,934.00 | $0.00 |

## I03 - Single 67, itemized just ABOVE the standard deduction (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $18,500.00 | $18,500.00 | $0.00 |
| Taxable income | $34,850.00 | $34,850.00 | $0.00 |
| Federal income tax | $3,934.00 | $3,934.00 | $0.00 |

## I04 - MFJ 70/70, LTC year, medical over the 7.5% floor (FL) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $43,000.00 | $43,000.00 | $0.00 |
| Taxable income | $109,000.00 | $109,000.00 | $0.00 |
| Federal income tax | $13,404.00 | $13,404.00 | $0.00 |

## I05 - Single 60, SALT over the $40,400 cap (CA) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $40,400.00 | $40,400.00 | $0.00 |
| Taxable income | $259,600.00 | $259,600.00 | $0.00 |
| Federal income tax | $59,629.25 | $59,629.25 | $0.00 |

## I06 - MFJ 55/55, SALT cap phased down above $505k MAGI (NY) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $11,900.00 | $11,900.00 | $0.00 |
| Taxable income | $567,800.00 | $567,800.00 | $0.00 |
| Federal income tax | $136,268.50 | $136,268.50 | $0.00 |

## I07 - Single 50, 37% bracket, the OBBB 2/37 limit (CA) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $80,878.38 | $80,878.38 | $0.00 |
| Taxable income | $819,121.62 | $819,121.63 | -$0.01 |
| Federal income tax | $259,032.25 | $259,032.25 | $0.00 |

## I08 - MFJ 45/45, mortgage over the $750k cap (post-2017 loan) (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $46,250.00 | $46,250.00 | $0.00 |
| Taxable income | $203,750.00 | $203,750.00 | $0.00 |
| Federal income tax | $34,249.00 | $34,249.00 | $0.00 |

## I09 - MFJ 45/45, same loan taken out in 2015, $1M cap (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $56,666.67 | $56,666.66 | $0.01 |
| Taxable income | $193,333.33 | $193,333.34 | -$0.01 |
| Federal income tax | $31,957.33 | $31,957.34 | -$0.01 |

## I10 - Single 75, charity over the 60% of AGI ceiling (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $34,000.00 | $34,000.00 | $0.00 |
| Taxable income | $10,000.00 | $10,000.00 | $0.00 |
| Federal income tax | $1,000.00 | $1,000.00 | $0.00 |

## I11 - Single 85, nursing-home year (FL) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $84,487.50 | $84,487.50 | $0.00 |
| Taxable income | $16,842.50 | $16,842.50 | $0.00 |
| Federal income tax | $1,773.10 | $1,773.10 | $0.00 |

## I12 - Single 67, small gift, standard wins, non-itemizer charity (TX) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $4,150.00 | $4,150.00 | $0.00 |
| Taxable income | $44,850.00 | $44,850.00 | $0.00 |
| Federal income tax | $5,134.00 | $5,134.00 | $0.00 |

## I13 - Single 60, 2030, SALT cap back to $10,000 (CA) (2030)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $22,000.00 | $22,000.00 | $0.00 |
| Taxable income | $178,000.00 | $178,000.00 | $0.00 |
| Federal income tax | $34,549.46 | $34,638.50 | -$89.04 |

## I14 - Head of household 50, mortgage + SALT (VA) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $29,000.00 | $29,000.00 | $0.00 |
| Taxable income | $91,000.00 | $91,000.00 | $0.00 |
| Federal income tax | $12,921.00 | $12,921.00 | $0.00 |

## I15 - MFJ 68/66, itemizing inside the senior-deduction phase-out (OR) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $33,745.00 | $33,745.00 | $0.00 |
| Taxable income | $213,500.00 | $213,500.00 | $0.00 |
| Federal income tax | $36,436.00 | $36,436.00 | $0.00 |

## I16 - MFJ 66/64, one senior, mortgage + SALT, itemizes (MN) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | No | No | match |
| Itemized deductions | $33,222.50 | $33,222.50 | $0.00 |
| Taxable income | $113,980.00 | $113,980.00 | $0.00 |
| Federal income tax | $14,499.60 | $14,499.60 | $0.00 |

## I17 - Colorado follows federal itemizing, adds back state tax (CO) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $38,250.00 | $38,250.00 | $0.00 |
| Taxable income | $110,250.00 | $110,250.00 | $0.00 |
| Federal income tax | $19,058.00 | $19,058.00 | $0.00 |

## I18 - North Dakota follows federal itemizing, no add-back (ND) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $38,250.00 | $38,250.00 | $0.00 |
| Taxable income | $110,250.00 | $110,250.00 | $0.00 |
| Federal income tax | $19,058.00 | $19,058.00 | $0.00 |

## I19 - Montana follows federal itemizing, adds back state tax (MT) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $38,250.00 | $38,250.00 | $0.00 |
| Taxable income | $110,250.00 | $110,250.00 | $0.00 |
| Federal income tax | $19,058.00 | $19,058.00 | $0.00 |

## I20 - Utah taxpayer credit on the itemized deduction (UT) (2026)

| Output | Retirement Figures | PolicyEngine | Difference |
|---|---:|---:|---:|
| Itemizes | Yes | Yes | match |
| Itemized deductions | $38,250.00 | $38,250.00 | $0.00 |
| Taxable income | $110,250.00 | $110,250.00 | $0.00 |
| Federal income tax | $19,058.00 | $19,058.00 | $0.00 |