It actually stands for State And Local Taxes, in other words, S-A-L-T.The SALT deduction is not new, it has been around for awhile. Does it mean I can deduct the amount of Salt that I put on my popcorn? Can I deduct which kind of Salt I use, Sea, Kosher, Himalayan, perhaps? The answer is No, none of these things! The SALT deduction doesn't have anything to do with condiments or spices. Find out whether you should itemize or use the standard deduction.With recent tax reform, a lot of folks are talking about it. Therefore, it will not be beneficial for most taxpayers to itemize on their returns and the changes to the SALT deduction won’t affect them. You might ask, does this apply to you? The easiest and most accurate way to find out is to start a free tax return on eFile.com, and based on your tax situation, we will determine what is most tax advantageous to you, and whether you should itemize or use the standard deduction.Due to tax reform signed into law in December 2017, the standard deduction that almost doubled for 2018 Tax Returns increased for 2019 Returns (see table below). Intuit TurboTax Premier 2017, Federal with State + Efile for Windows - Download.Since the standard deduction for your 2020 Tax Return increased, (from $12,200 to $12,400 for single and Married Filing Separately filers, $24,400 to $24,800 for married filing jointly and widow filers, and $18,300 to $18,650 for Heads of Household), it will not be beneficial for most taxpayers to itemize on their returns and the changes to the State and Local Tax (SALT) deduction won’t affect them.So you can see why the federal government was looking to eliminate it at first.According to a report from the Tax Policy Center, taxpayers with incomes of over $100,000 benefit the most from the SALT deduction. The SALT deduction is one of the largest federal tax expenditures as it costs the federal government trillions of dollars in lost revenue opportunities. The History of the SALT DeductionThe SALT deduction has been a part of our federal income tax since 1913. After legislators realized the impact of this, it was decided to simply reduce the SALT deduction to $10,000.What does this mean for you and how will it affect your tax return for 2019 and beyond? We will try and make this simple and easy to understand for you. During initial talks about tax reform, the SALT deduction was almost eliminated. As a result of this legislation, the SALT deduction has been reduced.
![]() ![]() Turbotax Home And Business 2017 Free Tax ReturnThe SALT deduction can include all or some of the following:The IRS will also receive a copy of the Form 1099-G. Itemized deductions are the total deductions that are listed out on your Schedule A, and it is not a fixed amount. Your standard deduction is a fixed amount that you can deduct that is based on your filing status (you get an additional amount added to your standard deduction if you are 65 or older). SALT Deduction ExplainedThe SALT deduction is a deduction that is claimed only if you itemize - that is, your itemized deductions are greater than your standard deduction and you file a Schedule A, which you can prepare and e-file on eFile.com. However, the residual effect of the reduction of SALT will be that state and local governments might choose to lower their tax rates (because folks are paying higher federal taxes) and this would result in lower dollars amounts for state and local programs and services. 2015 quicken for macYou cannot deduct state and local income taxes AND sales taxes. See your standard deduction based on your filing status.You can deduct property taxes AND state and local income taxes OR you can deduct property taxes AND sales taxes if you itemize your taxes. Remember that it does not benefit you to itemize if your total itemized deductions are not greater than your standard deduction. Should You Deduct SALT?If you itemize deductions on your federal tax return (in other words, you do not take the standard deduction) you can choose to deduct the items above on your filed or efiled Schedule A. ![]() How easy is that? SALT Deduction on Your Return on eFile.comWe make all these decisions easy for you when it comes to SALT. If itemizing your deductions is the best for you, then your SALT information will be included on your Schedule A which we will prepare for you. First, we will automatically select the most beneficial for you (Standard or Itemized deduction) based on the information you enter to give the most refund or least taxes owed (you can also choose to force one way or the other if you wish to do that). We will calculate the deduction amount for you and report it on your return.TurboTax ® is a registered trademark of Intuit, Inc.H&R Block ® is a registered trademark of HRB Innovations, Inc. You can report state and local income taxes, sales taxes, real estate taxes, or personal property taxes there.
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