H.R. 246: SALT Fairness for Working Families Act

This bill, titled the "SALT Fairness for Working Families Act," seeks to amend the Internal Revenue Code regarding the deductions individuals can claim for certain state and local taxes (often referred to as SALT deductions). The key aspects of the bill are as follows:

Increase in SALT Deduction Limits

The bill proposes to change the current limit on state and local tax deductions. Currently, individuals can deduct up to $10,000 for these taxes on their federal income tax returns. Under this new legislation:

• The limit would be increased to $15,000 for individuals.
• For married couples filing jointly, they would be able to deduct $30,000 (twice the individual limit).

Effective Date

The changes outlined in this bill would apply to taxable years starting after December 31, 2024. This means individuals would first be able to take advantage of the higher deduction limits when they file their taxes for the year 2025 and beyond.

Impact on Taxpayers

The aim of this bill is to provide tax relief to individuals and families who pay significant state and local taxes. By increasing the deduction limit, it would potentially lower the taxable income for eligible individuals, thereby reducing their overall tax burden at the federal level.

Relevant Companies

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