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Doubling Tax Deduction for Married Couples on State and Local Taxes

This bill increases the income tax deduction limit for married couples filing jointly. This means families can deduct more money paid for state and local taxes, potentially lowering their overall federal tax bill. These changes apply to tax years beginning after December 31, 2020.
Key points
Married couples filing jointly can deduct twice the amount of state and local taxes than before.
The increased deduction limit may lead to lower tax bills for eligible families.
New rules are effective for income earned from January 1, 2021 onwards.
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Additional Information
Print number: 117_S_804
Sponsor: Sen. Collins, Susan M. [R-ME]
Process start date: 2021-03-17