Who would benefit from the proposed $40,000 SALT cap? How this deduction works
The House just made a move that could shake up tax season for a lot of Americans-especially those in high-tax states. Lawmakers voted to raise the cap on the SALT deduction (short for state and local taxes), a part of the tax code that's been stirring debate since 2017.Right now, taxpayers can only deduct up to $10,000 in state and local taxes when they itemize deductions. That cap was introduced through the Tax Cuts and Jobs Act (TCJA), and it hit harder in places like New York, California, and New Jersey, where property taxes and incomes run high.The IRS clears up stimulus tax mythsIf the new proposal becomes law, the cap would jump to $40,000 starting in 2025, with a gradual phaseout for individuals earning over $500,000. The cap and phaseout threshold would increase by 1% annually until 2033.Aerial view […]
