The nonbusiness energy credit, which is for adding insulation and certain other energy improvements to a principal residence, has been extended through 2020. The credit for solar and certain other renewable energy added to a principal residence or vacation home applies for 2020, 2021 and 2022 at the rate of 26% (it was 30% prior to 2020). The credit will be 22% in 2023, but zero thereafter unless Congress extends it.
Items, such as interest, state and local income and sales taxes, charitable contributions, and medical deductions, claimed on Schedule A of Form 1040. Itemized deductions are subtracted from adjusted gross income to arrive at taxable income. The amount of itemized deductions is also subject to a reduction when adjusted gross income exceeds certain limits.