SALT Cap Will Leave About 10.9 Million People Feeling Tax Pain
- Taxpayers have $323 billion in taxes they can’t write off
- Law change to hit taxpayers in high-tax states the hardest
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About 10.9 million people are losing out on one of their most prized tax breaks -- the deduction for state and local taxes.
That’s the number of people the Treasury Inspector General for Tax Administration estimates had tax bills above the $10,000 deduction cap included in the 2017 tax overhaul. The law limited the amount of state and local taxes -- or SALT -- that taxpayers can write off, a change most acutely felt in high-tax states including New York, New Jersey, Maryland and California, where tax bills can easily exceed the threshold.