In 2023, Anna and Matt, married filers with an adjusted gross income of $420,000, deducted what amount of itemized deductions on their tax return if they had $50,000 in total itemized deductions?

In the context of itemized deductions, the correct answer reflects that Anna and Matt, with an adjusted gross income of $420,000, are eligible to claim their total itemized deductions of $50,000 in full.

For the tax year 2023, there are no limitations on itemized deductions for high-income earners like Anna and Matt, unlike previous tax years when the Pease limitation could reduce the total deductions for higher income families. Therefore, since their total itemized deductions do not exceed any threshold that would invoke a limitation, they can utilize the entire amount.

In essence, their deduction remains at $50,000, as they can fully benefit from their qualifying expenses without reductions. This principle underscores the importance of knowing how changes in tax law can affect the deductibility of itemized deductions.