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So is it a $10,000 limit for property taxes and you can still deduct state income tax in full, or does the $10,000 limit represent a combination of the two?
Example: Say you pay $8,000 in property taxes and $6,000 in state income tax, do you get to deduct only $2,000 of the income tax (difference between property tax and $10,000), or can you deduct the full $14,000?
personal exemptions are gone, so any families with multiple kids will most likely lose out here.
But the child credit has been increased and the rates lowered so it is likely a wash or close to it on that front. The killer is for upper middle class people in NY/NJ, since they lose the exemptions so the increased standard deduction won't help them much. But the Repubs don't care about NY/NJ/CA.
So is it a $10,000 limit for property taxes and you can still deduct state income tax in full, or does the $10,000 limit represent a combination of the two?
Example: Say you pay $8,000 in property taxes and $6,000 in state income tax, do you get to deduct only $2,000 of the income tax (difference between property tax and $10,000), or can you deduct the full $14,000?
So is it a $10,000 limit for property taxes and you can still deduct state income tax in full, or does the $10,000 limit represent a combination of the two?
Example: Say you pay $8,000 in property taxes and $6,000 in state income tax, do you get to deduct only $2,000 of the income tax (difference between property tax and $10,000), or can you deduct the full $14,000?
10K for the whole shebang. Basically it won't pay to itemize, upper middle class people who live in high tax areas are going to lose big time. They can no longer deduct their high property taxes + high state taxes which can easily top $30k (you only get $24.4k on the standard, plus lose the exemption)
Anyone who made $100-$150k in NJ and voted for Trump hopefully learned their lesson. He is a con man, always was, always will be.
On the plus side, maybe some localities will now be more responsible when deciding to raise taxes since the feds are no longer going to subsidize it.
That won't happen, though it would be nice if it did. Actually the state/local gov't will have to raise taxes to pay for the cuts that are coming from the Feds.
There is a report out today from the U.S. Census that New Jersey has lost population in the last year to domestic migration. Things are going to have to change as wealthy retirees will just pack up and move to Florida.
Things are going to have to change because retirees will just pack up and move to Florida.
Pretty sad, but that is/was the discussion in our house today. And with the new Governor elect Murphy already promising to raise taxes and declaring our state a sanctuary state it's starting to look like a reality.
That won't happen, though it would be nice if it did. Actually the state/local gov't will have to raise taxes to pay for the cuts that are coming from the Feds.
Count on it, that states like Nj will raise taxes just to beat down voters and make them turn on Trump. It will not be for ethical or helpful needs.
The dems, like new gov murphy, will make NJ voters squeal all in a effort win votes. That is what NJ taxpayers are for, playthings for politicians, especially the democrats in NJ.
Pretty sad, but that is/was the discussion in our house today. And with the new Governor elect Murphy already promising to raise taxes and declaring our state a sanctuary state it's starting to look like a reality.
FLORIDA MAN doesn't have a nice a ring to it.
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Things are going to have to change because retirees will just pack up and move to Florida.
