SALT Phase out

[Anonymous]

So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

[Anonymous]

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Unless it changed, I think there's a floor at $10K, so you can't lose more than the $30K increase. At $600K+ you're back to just getting $10K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

$10k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

Well, great. You go ahead and pay more in taxes. We can set up a special donation fund for people like you.

I, for one, am delighted about this and I'm not embarrassed to say so. Between DC and the feds, we pay plenty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

I assume you use a tax program. The program will know exactly what you can deduct against federal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

DP: Most of us with w2 income in the 500-800K range pay a shit ton in taxes, have no way to "hide from taxes". We are literally a huge part of the Top people who pay 80% of the taxes. So don't yell at people who are actually paying a huge percent of their income in taxes. We are not hiding it.


BTW, I didn't vote for this, I have always voted to pay extra taxes to help those in need.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

Well, great. You go ahead and pay more in taxes. We can set up a special donation fund for people like you.

I, for one, am delighted about this and I'm not embarrassed to say so. Between DC and the feds, we pay plenty.

Cool beans lady.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

I assume you use a tax program. The program will know exactly what you can deduct against federal.

Why are you assuming OP uses a tax program?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

OP here. I never said I was worried about getting a tax break. In fact, I am against tax breaks for high earners like myself. I simply wanted to understand the new rule. I manage my finances myself and try to keep on top of tax laws, etc.

I assume you use a tax program. The program will know exactly what you can deduct against federal.

Most people at that income level allocate their savings into different accounts, so understanding how their cashflows/reserves will be affected is important during a significant change like this. Waiting for TaxCut to tell you what you owe is too late.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, how will the phase out work if your income is over $500,000? Say your MAGI is $600,000, how do you calculate the applicable SALT deduction?

For your income above $500K, it reduces the SALT deduction by $.30 on the dollar. So take 30% of your amount over $500K and subtract it from the $40K max. So at approximately $633K you will loose the entire SALT deduction

Thanks. This is helpful. We are above $650,000, so does SALT cap revert to $10,000 or is it eliminated?

Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

DP: Most of us with w2 income in the 500-800K range pay a shit ton in taxes, have no way to "hide from taxes". We are literally a huge part of the Top people who pay 80% of the taxes. So don't yell at people who are actually paying a huge percent of their income in taxes. We are not hiding it.


BTW, I didn't vote for this, I have always voted to pay extra taxes to help those in need.

Say it louder for people in the back.

[Anonymous]

Anonymous wrote:Not to be mean- it is shocking that you make north of 600K and are worried that you might not get a tax break…. You will be fine, your family with have healthcare and groceries.

I'm strongly against this bill, but if it winds up benefitting me I might as well take advantage.

Don't hate the player, hate the game.