State & Local Tax

The State and Local Tax (SALT) deduction is one that has gone through considerable changes in the last few years. It stands as one of the largest federal tax expenditures, although the estimated cost will plummet after the Tax Cut and Jobs Act (TCJA) increased deduction amounts, capping the SALT deduction at $10,000.

But what does this mean for the taxpayer? The TCJA limits the SALT, meaning that taxpayers cannot deduct more than 10,000 of total state and local taxes. It is a provision set to expire after 2025, but for now has reduced the amount of taxpayers who will itemize deductions.

With the tax system constantly evolving, it’s good to know where you stand—and our experts at Atherton & Associates, LLP can help advise you on what’s best for the largest return.