The "SALT Cap"
Hi everyone, getting back to a bit of state tax with this post.
As a refresher, under what is now known as the "Trump Tax Reform", the deduction for state taxes has been capped at $10,000. State taxes are one of the popular deductions found on Form 1040's Schedule A "itemized deductions". For those people that had high real estate property taxes, this deduction cap was a harsh blow. For example, instead of a deduction for all state taxes of say, $20,000 that they would normally get, these folks now only get a $10,000 deduction.
Since the enactment of this SALT (state and local tax ) cap, there has understandably been a lot of outrage, and some state governments themselves have been trying to enact rules that mitigate this cap for their residents.
The latest on this topic is that the US House of Representatives has passed legislation that will suspend this cap for two years (for people with adjusted gross income under $100,000,000). It isn't a done deal yet, but it looks very promising. Fingers crossed !