Americans who rely on the state and local tax (SALT) deduction at tax time may be in luck.
A Democratic proposal aims to restore the SALT deduction for taxpayers who make less than $400,000 a year and increase the deduction cap for Americans who make up to $1 million. The Supporting Americans with Lower Taxes (SALT) Act, sponsored by U.S. Reps. Tom Malinowski (D-N.J.) and Katie Porter (D-Calif.) would undo the $10,000 cap on the SALT deduction instituted in 2018 under former President Donald Trump.
Here’s a look at how the SALT deduction and how the proposed legislation could impact your finances. For help with your taxes, managing your investments or creating a holistic financial plan, consider working with a financial advisor.
What is the SALT Deduction?
