Starting in 2025, the state and local tax (SALT) deduction cap rises from $10,000 to $40,000 for married couples. This is a big deal for families in high-tax states like New York, California, and New Jersey. Here’s what to know: – Deduction cap increases 1% annually until 2029, then reverts back in 2030 – Phase-out begins at $500,000 modified AGI ($250,000 if married filing separately) – Only applies if you itemize deductions (about 10% of filers do) – Potential tax savings: up to $6,600 federally per filer at a 22% marginal tax rate This is a short window of opportunity, so coordination is key. Talk with your CPA to see if this strategy makes sense for you!
