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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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?[/quote]

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

[/quote]

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

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.[/quote]

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.  [/quote]

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

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.  [/quote]

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.[/quote]

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