SALT Relief Act
Source: Congress.gov ·
227 words in original text
What This Bill Does
This bill increases the limit on how much people can deduct (subtract from their taxable income) for state and local taxes when filing federal income taxes. The bill amends the Internal Revenue Code of 1986 to make this change.
Who It Affects
Taxpayers who claim deductions for state and local taxes on their federal income tax returns.
Key Provisions
• The deduction limit for state and local taxes increases from $10,000 to $50,000 for most taxpayers (Sec. 2(a))
• The deduction limit for married taxpayers filing separate returns increases from $5,000 to $25,000 (Sec. 2(a))
What Changes
If this bill becomes law, people can deduct up to $50,000 in state and local taxes (instead of $10,000) when calculating their federal income taxes. Married couples filing separately can each deduct up to $25,000 (instead of $5,000).
Important Definitions
• Deduction: an amount of money you can subtract from your income to lower your taxes
• State and local taxes: taxes paid to state and local governments
Effective Date
The changes apply to taxable years beginning after December 31, 2022.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.