Many Rich Fretting About SALT Didn’t Get That Tax Break Anyway

Bloomberg: Many Rich Fretting About SALT Didn’t Get That Tax Break Anyway

About three-quarters of people who in past years paid more than $10,000 in state and local taxes had been required to take the alternative minimum tax, meaning they couldn’t have written off the SALT levies anyway, according to IRS data analyzed by Bloomberg. And because the AMT has been scaled back as well, those top earners in fact get a new tax break by now being able to write off up to $10,000 of their SALT payments.

Bloomberg analyzed IRS data from 10 of the wealthiest counties in the U.S. – including New York’s Westchester, New Jersey’s Somerset, Connecticut’s Fairfield and California’s Marin counties.

The numbers could deflate some of the heated rhetoric over the 2017 tax overhaul, the Republican Party’s signature legislation of the Trump era. Since the law was enacted, governors and lawmakers from high-tax states have decried the change as a GOP assault on Democratic strongholds. New York Governor Andrew Cuomo called it an “economic civil war.”

“A lot of folks are coming in assuming they’re going to lose under the new tax law when in fact, they’re not,” said Ryan C. Sheppard, an accountant at Knight Rolleri Sheppard in Fairfield, Connecticut. “In many cases they’re doing better because in prior years the alternative minimum tax disallowed all their state and local tax deductions. Now they’re at least getting $10,000, where they got zero before.”


You should poll :nerd_face:

Only @harriet has done her taxes it seems. Who else wants to share their tax situation under the new law?

Leona Mindy Roberts Helmsley (July 4, 1920 – August 20, 2007) was an American businesswoman, known for her flamboyant … “We don’t pay taxes; only the little people pay taxes,”

This is true and right.

I said in a past post we were impacted a lot - owed 3k this year in federal and usually get back 10k. That was including the fact that I overpaid into SS 3k too because I changed jobs halfway through 2018…so we would have owed even more


Should compare the total tax reliability, not how much refund.

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