SALT Phase out

[Anonymous]

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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.

By mistake

[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

[Anonymous]

Some us are also in high tax states, there’s never really tax relief.

[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.

We used to get hit by the AMT every year, but the first Trump “tax cut” didn’t change our bottom line tax bill much at all. We benefited from the rate cuts, but losing SALT and a few other tweaks hurt us so it was essentially a wash.

[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.

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.

We used to get hit by the AMT every year, but the first Trump “tax cut” didn’t change our bottom line tax bill much at all. We benefited from the rate cuts, but losing SALT and a few other tweaks hurt us so it was essentially a wash.

I just looked up the analysis I did at the time - our AGI was $330k in 2017, the last year we had to pay AMT, and our total federal tax due was around $70k. If the tax cuts had been in place in 2017 (iirc they took effect for 2018), we would have owed around $58k.

[Anonymous]

Anonymous wrote:

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.

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.

We used to get hit by the AMT every year, but the first Trump “tax cut” didn’t change our bottom line tax bill much at all. We benefited from the rate cuts, but losing SALT and a few other tweaks hurt us so it was essentially a wash.

I just looked up the analysis I did at the time - our AGI was $330k in 2017, the last year we had to pay AMT, and our total federal tax due was around $70k. If the tax cuts had been in place in 2017 (iirc they took effect for 2018), we would have owed around $58k.

I never did this analysis, but I did compare 2017 to 2018 where we had very similar AGI. In 2017, we had $543k AGI and paid $143k. In 2018, we had $549k AGI and also paid $143k. So maybe we saved a couple thousand on that extra $6k in AGI.

[Anonymous]

AMT was never intended to be applied so broadly. There was bipartisan agreement to revisit it. That isn’t a controversial part of TCJA.

[Anonymous]

Anonymous wrote:AMT was never intended to be applied so broadly. There was bipartisan agreement to revisit it. That isn’t a controversial part of TCJA.

I don’t doubt that but it applied to me for almost my entire working life, starting in 2004. My recollection is hazy at this point but I think it essentially wiped out most of my SALT deductions so the SALT cap in the TCJA didn’t seem to impact me. Whether congress would have changed the AMT anyway, I don’t know.

[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.

You care. You started a thread about it.

[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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

[Anonymous]

Anonymous wrote:

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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

You’re going to love the new limitation they put on charitable deductions.

[Anonymous]

Anonymous wrote:

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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

No. I had to get an appraisal for some items before donatiing them and it because too much hassle after that.

[Anonymous]

Anonymous wrote:

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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

So you’re Mormon and pay your 10% tithe, congrats. Not particularly relevant in the DC area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

You’re going to love the new limitation they put on charitable deductions.

What are the new limits?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

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.

Does no one making over 500K have charitable donations of more than $30K? We make $350K and donate 35K plus have other deductions so wouldn’t take the standard.

You’re going to love the new limitation they put on charitable deductions.

What are the new limits?

Only can deduct the amount over 0.5% AGI and any deduction in the 37% bracket is limited to 35%.