What are SALT taxes besides property taxes and state income taxes?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here's our situation:

State (MD) and local (MoCo) income tax (HHI of $190K): $14,000

Real estate taxes ($850K house in Bethesda): $7,500

Total SALT: $21,500; deduction lost $11,500.

I haven't done our taxes yet to see the net impact, but I'm scared.

You are in the sweet zone of people who would be the most impacted 150K to 200K in high tax states but its not a sure thing.

Depending on number of kids, prior AMT status, marriage penalty you might breakeven. Only one way to find out is to do your taxes.

Cheer up! While people in the 150-200k income bracket are paying more in taxes, the ultra rich will be getting tax cuts averaging $700k.

No worries; it will definitely trickle down!

[Anonymous]

As a single parent, I don’t get the child tax credit (it phases out at a much lower income level than for married couples), and my personal deduction is $12K, not $24K. So cutting my SALT deduction from the $22K that it is to just $10K sucks!

[Anonymous]

Anonymous wrote:As a single parent, I don’t get the child tax credit (it phases out at a much lower income level than for married couples), and my personal deduction is $12K, not $24K. So cutting my SALT deduction from the $22K that it is to just $10K sucks!

Can you file head of household? Standard deduction is $18K for HoH.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a single parent, I don’t get the child tax credit (it phases out at a much lower income level than for married couples), and my personal deduction is $12K, not $24K. So cutting my SALT deduction from the $22K that it is to just $10K sucks!

Can you file head of household? Standard deduction is $18K for HoH.

+1. HoH tax bracket thresholds are also higher.

I'll note, though, that while the child tax credit phaseout is half of what it is for married couples for HoH and single filers--it is still $200K, which is far, far more than most households in the U.S. are earning.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My state income tax is about 9k, 8k in property taxes, and 1 k in personal property taxes. 18K. 8k deduction lost.

Meh. you get the 24K standard deduction. Cry me a river.

We all lost the personal exemption, which for a family of four = $16500 or there abouts.

16K + 18 k = 34K

^PP lost 10K in deductions/exemptions.

Lots of things are set to expire. Maybe the PP will cry him or herself a river come 2025:

https://taxfoundation.org/look-ahead-expiring-tax-provisions/

"...December 31st, 2025, will be a significant day for most taxpayers. Twenty-three provisions from the Tax Cuts and Jobs Act directly relating to individual income taxes will expire, meaning most taxpayers will see a tax hike unless some or all provisions are extended. Some of the most impactful provisions scheduled to expire include the TCJA’s reduction of individual income rates, increased child tax credit, the increased AMT exemption and phaseout threshold, and the increased standard deduction. The individual income tax code is effectively scheduled to return to what it was before the TCJA, meaning personal exemptions, the overall limitation on itemized deductions, uncapped state and local tax deductions, and many other miscellaneous itemized deductions will return. Despite most of the individual income tax code returning to its pre-TCJA structure, inflation adjustments will continue to be determined by the Chained Consumer Price Index (C-CPI), as set by TCJA, which will result in most taxes increasing when compared to their pre-TCJA levels. Additionally, the qualified business income deduction, which allows pass-through businesses to deduct up to 20 percent of their income, will also expire. For a full list of the twenty-three expiring provisions, consult this JCT publication."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My state income tax is about 9k, 8k in property taxes, and 1 k in personal property taxes. 18K. 8k deduction lost.

Meh. you get the 24K standard deduction. Cry me a river.

We all lost the personal exemption, which for a family of four = $16500 or there abouts.

16K + 18 k = 34K

^PP lost 10K in deductions/exemptions.

Lots of things are set to expire. Maybe the PP will cry him or herself a river come 2025:

https://taxfoundation.org/look-ahead-expiring-tax-provisions/

"...December 31st, 2025, will be a significant day for most taxpayers. Twenty-three provisions from the Tax Cuts and Jobs Act directly relating to individual income taxes will expire, meaning most taxpayers will see a tax hike unless some or all provisions are extended. Some of the most impactful provisions scheduled to expire include the TCJA’s reduction of individual income rates, increased child tax credit, the increased AMT exemption and phaseout threshold, and the increased standard deduction. The individual income tax code is effectively scheduled to return to what it was before the TCJA, meaning personal exemptions, the overall limitation on itemized deductions, uncapped state and local tax deductions, and many other miscellaneous itemized deductions will return. Despite most of the individual income tax code returning to its pre-TCJA structure, inflation adjustments will continue to be determined by the Chained Consumer Price Index (C-CPI), as set by TCJA, which will result in most taxes increasing when compared to their pre-TCJA levels. Additionally, the qualified business income deduction, which allows pass-through businesses to deduct up to 20 percent of their income, will also expire. For a full list of the twenty-three expiring provisions, consult this JCT publication."

The SALT limitations will also expire and it will go back to being uncapped. Frankly, I think the SALT limitations will be eliminated or significantly increased before that. The current $10K limit represents a critical threat to the finances of most state governments, especially as it relates to financing education. I imagine this will be a major change in the budget put forth by the House this year.