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House Democrats propose eliminating $10,000 limit on state and local tax deductions

House Democrats propose eliminating $10,000 limit on state and local tax deductions

Finance
New York, New YorkE+ | Getty ImagesThere are three weeks left in the year, and House Democrats are taking a last shot at ending the $ 10,000 limit on state and local tax deductions.Rep. Thomas Suozzi, D-N.Y, along with Reps. Bill Pascrell, D-N.J., and Mike Thompson, D-Calif., proposed the "Restoring Tax Fairness for States and Localities Act."The measure is scheduled for markup by the House Ways and Means Committee on Wednesday alongside the "Know Your Social Security Act," a bill that aims to aims to reinstate mailed Social Security statements.Suozzi's bill is the latest effort by blue states to fight back against certain provisions in the Tax Cuts and Jobs Act.The overhaul of the tax code, which went into effect in 2018, imposed a $ 10,000 limit on state and local tax deductions that ite...
Making sense of the new cap on state tax deductions

Making sense of the new cap on state tax deductions

Finance
The GOP tax bill explainedA lot of change is coming to taxes -- how much you'll pay and how you prepare them. Some people will pay more, some will pay less. It depends on many factors. One of the most controversial changes are those surrounding the deduction on state and local income taxes, a.k.a SALT. If you live in a state with high income and property taxes, you could lose out under the new tax plan. We tried to make sense of it for you. How does the SALT deduction work? Under the new plan, taxpayers who itemize will be able to deduct their state individual income, sales and property taxes up to a limit of $ 10,000 in total starting in 2018. Currently the deduction is unlimited. But filers have to choose to deduct either individual income taxes or sales taxes. For most people, deducti...