Federal tax law caps the itemized deduction for state and local taxes (SALT) at $10,000 ($5,000 for married persons filing separately). A handful of states—CT, LA, MD, NJ, OK, RI, and WI—allow owners of pass-through entities. Besides these state-level actions, Congress is still considering suspension or repeal of the SALT cap for 2020 and perhaps beyond.
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Alert: Follow coronavirus-related federal tax changes for your business through the IRS.