New Jersey residents getting a jump on their 2018 taxes are also getting a good look at how President Donald Trump’s $10,000 cap on SALT deduction is affecting their returns.
And they’re not happy with what they’re seeing.
And if there’s one thing federal lawmakers don’t like, it’s disgruntled constituents. That explains why they unveiled a bipartisan bill yesterday to fully restore the state and local tax deduction — aptly naming it “SALT.”
“Which stands for Stop Attacking Local Taxpayers,” said Sen. Bob Menendez (D-NJ).
At a Bergen County CPA firm, congressional leaders outlined the benefits of restoring the full credit, using the earnings of a single mom making $100,000 a year, paying $14,000 in property taxes. Lawmakers say restoring SALT would save about $1,500 on her federal tax return. The bill offsets the cost by restoring the top tax rate to 39.6 percent, the level of top earners prior to the GOP reform.
“In 2016, 1.8 million, or around 40 percent of New Jersey taxpayers deducted their property and state income taxes, averaging $18,000 per deduction,” Menendez said.
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