SALT Phase out

[Anonymous]

Anonymous wrote:

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?

Because 99.9% of all people use TurboTax or the equivalent…especially a top earner. Nobody is doing their own paper tax return.

[Anonymous]

Anonymous wrote:

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.

OP won’t owe anything more than in years past…and may owe less.

Often the previous year paid version will actually incorporate new tax law for the current year to determine what your estimated taxes will look like in the current year.

[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.

+1. Blue state high six figure W2 professionals are paying full freight while the truly wealthy are fleecing us.

[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.

Not to be mean- but F off.

[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.

Exactly. I think an under appreciated bit about Trump’s coalition is that he has a lot of lower income people and a lot of high income people with S corp pass throughs, business write offs, and carried interest. But the people with high 6 figure w-2 are the people who tend to be least likely MAGA. Everything with him is about revenge.

[Anonymous]

Anonymous wrote:

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?

Because I assume you have to be smart to make that much money. A smart person would use a tax program.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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?

Because 99.9% of all people use TurboTax or the equivalent…especially a top earner. Nobody is doing their own paper tax return.

We haven't done our own taxes in over 20 years. We pay someone to do it.

[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.

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.

+1. Blue state high six figure W2 professionals are paying full freight while the truly wealthy are fleecing us.

+1 million. W2 earners here with HHI in the 600k, we don't have an opportunity to steal and cheat.

[Anonymous]

I don’t think this will benefit us at all, would have been nice when I was single with a lower standard deduction but since the standard deduction is 30k for MFJ in 2025 and I make around 300k with stay at home wife and a relatively cheap house/low mortgage rate I’m not accumulating very many deductions if itemizing. With state income tax/va car tax/mortgage interest/property tax it would bring us to right around 30k, so it’s a wash.

[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.

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.

Exactly. I think an under appreciated bit about Trump’s coalition is that he has a lot of lower income people and a lot of high income people with S corp pass throughs, business write offs, and carried interest. But the people with high 6 figure w-2 are the people who tend to be least likely MAGA. Everything with him is about revenge.

Yup, these are all the educated professionals who understand things like climate change and vaccines and the value of PBS and medical research. We are not his people.

[Anonymous]

Anonymous wrote:

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.

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.

+1. Blue state high six figure W2 professionals are paying full freight while the truly wealthy are fleecing us.

+1 million. W2 earners here with HHI in the 600k, we don't have an opportunity to steal and cheat.

We are enjoying substantial tax cuts though. Remember the AMT? That used to hit the high six figure W2 professionals in high tax states hard.

[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.

+1 if you want to pay more do so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

+1. Blue state high six figure W2 professionals are paying full freight while the truly wealthy are fleecing us.

+1 million. W2 earners here with HHI in the 600k, we don't have an opportunity to steal and cheat.

We are enjoying substantial tax cuts though. Remember the AMT? That used to hit the high six figure W2 professionals in high tax states hard.

What are they doing to the AMT?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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?

Because 99.9% of all people use TurboTax or the equivalent…especially a top earner. Nobody is doing their own paper tax return.

We haven't done our own taxes in over 20 years. We pay someone to do it.

Maybe read what OP wrote…he/she does their own taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

+1. Blue state high six figure W2 professionals are paying full freight while the truly wealthy are fleecing us.

+1 million. W2 earners here with HHI in the 600k, we don't have an opportunity to steal and cheat.

We are enjoying substantial tax cuts though. Remember the AMT? That used to hit the high six figure W2 professionals in high tax states hard.

I've been taking the standard because we have a low morgage.