The SALT deduction

by Laurence M Vance

“About one-third of tax filers opt to itemize deductions on their federal income tax returns, and almost all who do so claim a deduction for state and local taxes paid. Although taxpayers in every state claim the SALT deduction, those in states with a disproportional share of high-income taxpayers and relatively high state and local taxes (like Connecticut, Maryland, and New Jersey) are more likely to claim the deduction. The SALT deduction keeps almost $100 billion a year out of the hands of Uncle Sam. This is why the SALT deduction — and the deductions for educator expenses, business expenses of performing artists, health savings accounts, moving expenses, self-employment tax paid, alimony paid, student loan interest, tuition and fees, domestic production activities, and (if you itemize deductions) medical and dental expenses, real estate taxes, personal property taxes, home mortgage interest, gifts to charity, mortgage insurance premiums, casualty or theft losses, unreimbursed employee expenses, union dues, and tax preparation fees — are so important. They all lower taxable income, which lowers the amount of taxes due no matter which tax bracket one is in.” (06/27/17)