Will Biden Repeal GOP's Tax Change That Reduced His Deductions by $352,000?
In 2018, Democratic presidential nominee Joe Biden and his wife took a $10,000 deduction for state and local taxes on their federal tax return (the most recent tax return available for review). While this deduction provided the Bidens with some tax savings, it was a fraction of the substantial savings they could have realized if not for the Tax Cuts and Jobs Act which was signed into law at the end of 2017.
The Tax Cuts and Jobs Act imposed a $10,000 cap on the "SALT deduction," which is the federal deduction you can claim for state and local taxes (SALT) if you itemize. There had been no cap prior to 2017. If the law hadn't changed and no $10,000 limit had been imposed, the Bidens would have been able to deduct the entire $361,966 they paid in state and local taxes in 2018. Effectively, the SALT cap reduced the Biden's tax deductions by nearly $352,000.
If Biden wins the presidency and the Democrats take control of the Senate after the November election, however, there's some chance that this deduction cap could disappear and the Bidens would potentially get their full deduction back again.
Source Fool.com
