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This bill would raise the amount that individuals can deduct on their federal taxes for certain state and local taxes, often called the SALT deduction. Right now, most people can deduct up to $10,000, but this bill would increase that limit to $15,000 for single filers and to $30,000 for married couples filing jointly. The change is meant to give more tax relief to working families who pay higher state and local taxes. The new limit would start for tax years beginning after December 31, 2024.
- Raises the deduction limit from $10,000 to $15,000 for most individual filers.
- Sets the limit at twice that amount, or $30,000, for married couples filing a joint return.
- Applies to tax years starting after December 31, 2024.
Official Summaries
SALT Fairness for Working Families Act
This bill increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $15,000 ($30,000 for married individuals filing a joint federal income tax return).
Under current law, the SALT deduction cap is $10,000 ($5,000 for a married individuals filing separate federal income tax returns).
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 246 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 246
To amend the Internal Revenue Code of 1986 to increase the limitation
on the amount individuals can deduct for certain State and local taxes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 9, 2025
Ms. Underwood (for herself and Mr. Casten) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the limitation
on the amount individuals can deduct for certain State and local taxes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SALT Fairness for Working Families
Act''.
SEC. 2. INCREASE IN LIMITATION ON DEDUCTION FOR CERTAIN STATE AND LOCAL
TAXES OF INDIVIDUALS.
(a) In General.--Section 164(b)(6)(B) of the Internal Revenue Code
of 1986 is amended by striking ``$10,000 ($5,000 in the case of a
married individual filing a separate return)'' and inserting ``$15,000
(twice such amount in the case of a joint return)''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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