House Caucus Created for SALT Tax Overhaul
In 2017, the Tax Cuts and Jobs Act was passed, which brought about several tax benefits for the working class. However, it also resulted in raised taxes in certain areas.
One of the changes implemented was a cap of $10,000 on the amount of state and local tax (SALT) that an individual can deduct on their federal return. This policy had a significant impact on taxpayers in high-income tax states as well as higher-income property owners who had to limit their total state income and real estate tax deductions to $10,000 on their federal return.
Recently, a bipartisan SALT Caucus was created to ensure that the limit expires in 2025 as planned, or to increase the deduction between now and then. Although nothing has been created yet, the Caucus has stated that they are “not going to settle for a low bid offer.” If you have any questions about how this will affect you or any other tax-related concerns, feel free to reach out to your trusted DSWD advisor.