What is a SALT phase-out threshold?
A SALT phase-out threshold is the modified adjusted gross income level at which the enhanced $40,000 state and local tax deduction cap begins to decrease under the One Big Beautiful Bill Act. For most filers, the phase-out starts at $500,000 in 2025 and $505,000 in 2026, reducing the cap by 30% of excess income down to a $10,000 floor. Taxpayers approaching these limits should explore Tax loss harvesting to manage AGI.
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