New for 2025 - Huge deduction increase.

With the tax reform act passed this year you maybe eligible to deduct up to $40,000 in state and local taxes.

New for 2025, you can deduct up to $40,000 in state and local taxes if you itemize. This is an increase of $30,000  above the previous $10,000 cap we had in the past.

Your income must be below $250,000 for single and married filing separate filers and $500,000 for married filing joint before a phase out begins. If you make over $600,000 married filing joint or $300,000 all other statuses then you will only be eligible for the old $10,000 limit.

There is a marriage penalty on this deduction as single fliers and married filers both get a $40,000 limit. Married filing separate filers do not get a double benefit for this deduction. They are limited to $20,000 each adding up to $40,000.

If you have any questions please give us a call to set up a meeting.