Tax reform could hit certain high-tax states harder than others

The loss of SALT as well as also mortgage deductions could result in a bigger hit for residents of certain states, according to Chris Raulston, a wealth strategist at Raymond James.

“The bottom line is actually for families in these particular states in which have not only higher state tax rates as well as also higher state income taxes as well as also real property taxes, the loss of deductions will impact them much more than families in states with lower state income taxes as well as also real property taxes,” Raulston said.

Effects of the improvements would likely vary depending on the size of the family, their income as well as also the standard deduction they would likely be allowed to take under the plan’s revised individual income brackets. Some lower as well as also middle income taxpayers could be made whole if the doubling of the standard deduction offset the elimination of the personal exemption as well as also itemized deductions, Raulston said.

yet the same might not be true for larger families, he said. in which’s because the elimination of deductions as well as also exemptions — such as for the family’s mortgage, number of family members or state income as well as also real estate taxes — might amount to more than the increased standard deduction.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

two + six =