House passes bill to lift $10,000 cap on state and local tax deductions

New York, New Jersey and California are among the states where taxpayers are feeling the brunt from the $10,000 SALT cap.

Among New Yorkers who itemized in 2017, the average SALT deduction claimed was $23,804, according to the Tax Policy Center.

New Jersey itemizers wrote-off an average of $19,162 on state and local taxes that year, while Californians claimed $20,451, the Center found.

These states are also home to some of the highest income taxes in the nation.

Meanwhile, New Jersey residents are paying some of the highest property taxes.

Controversy over the SALT cap also has spurred litigation by the affected states.

New York, Connecticut, Maryland and New Jersey have filed suit against the Treasury Department and the IRS, asserting that the SALT deduction limit was unconstitutional.

Separately, New York, New Jersey and Connecticut are also fighting the Treasury Department and the IRS in court over the agencies’ move to block workarounds established by the three states.

Article source: https://www.cnbc.com/2019/12/20/house-passes-bill-to-lift-10000-cap-on-state-and-local-tax-deduction.html