Federal Tax, Tax

SALT Deduction Increase is Rejected by the House of Representatives

The U.S. House of Representatives recently rejected a bill that would have increased the state and local tax (SALT) deduction for certain taxpayers. Specifically, it would have increased the SALT deduction from $10,000 to $20,000 for married couples filing jointly with incomes up to $500,000. However, the SALT Marriage Penalty Elimination Act never reached the House floor for a full vote. The bill sought to rectify the so-called marriage penalty that applies the $10,000 cap to married couples filing jointly. It’s currently unclear if there’s another path forward for this or a similar bill. The SALT deduction was capped at $10,000 by the Tax Cuts and Jobs Act and is set to expire after 2025. Contact the Cg Team with questions © 2024