Is tax relief coming to high-tax states? The SALT deduction cap could be temporarily raised. Comparing the House and Senate plans for the SALT deduction and other tax changes. Higher standard deductions and a new senior tax break could mean big savings. #TaxpayerRelief #TaxReform#SALTDeduction
00:00Taxpayers in high-tax states are eyeing a glimmer of hope as a proposed tweak to the state and local tax, or SALT, deduction inches closer to reality.
00:11Capped at $10,000 since 2018, this deduction has disproportionately impacted residents in states like New York, California, and New Jersey.
00:21The House proposes a $40,000 cap for married couples, phased out for higher earners, lasting until 2034.
00:29The Senate's approach is temporary.
00:31A $40,000 cap in 2025, adjusting annually through 2029 before reverting to $10,000 in 2030.
00:42This Senate plan also includes a phase-down for high earners, ensuring the wealthiest still receives some benefit, but not the full amount.
00:50The Senate's version of the One Big Beautiful Bill of America, or OBBB, offers a temporary boost, providing much-needed relief to those who ve-felt the sting of the cap since the Tax Cuts and Jobs Act took effect.
01:05Both the House and Senate proposals aim to expand the SALT deduction, but with key differences.
01:12Beyond SALT, the Senate bill also proposes permanent extensions of the TCJA's higher standard deduction amounts, with an extra boost from 2025 through 2028.
01:22This means a significant increase in standard deductions for single filers, heads of household and married couples filing jointly, retirees to have reason to cheer, with a larger senior tax deduction proposed.
01:37These changes could dramatically alter how many taxpayers itemize, potentially reversing the trend scene since 2018 when itemization rates plummeted.
