Reply to The increase in SALT caps is so ridiculous

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Reply to "The increase in SALT caps is so ridiculous"

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[quote=Anonymous][quote=Anonymous]The SALT increase went up about $10k. It is not responsible for you getting $5,400 more in your refund.

Still, I agree with you. It’s ridiculous. But blame the entire government. Democracy favors short term solutions. It’s going to be the end of this great country. [/quote]

SALT in 2024 was $10k. This year is $40k.

Let's say you paid $45k in SALT in 2024 and $15k in mortgage interest + had $5k various other potential writeoffs .  You would have taken the standard deduction ($30k) as DINKs since SALT was capped at $10k. Now with SALT at $40k, it makes itemizing worth it. Let's say very little changed. Now you deduct $40k SALT + $15k mortgage interest + $5k. Your deduction now balloons from $30k to $60k since you get to deduct full SALT.

You're getting way more in deduction. Many people will probably itemize now too and they'll be able to get out of tax brackets after you add in contributions to retirement accounts.  They'll see a huge increase in tax returns because of the BBB that is exploding the debt. [/quote]

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