SALT changes may not be as sweet as clients think.
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Quick Tax Tip
With Art Werner
CPE Today
Tax guru Art Werner doesn’t pull punches—and when it comes to the state and local tax (SALT) deduction limits in the proposed “Big Beautiful Bill,” he’s sounding the alarm for tax pros across the country.
“This was the one area under the Tax Cuts and Jobs Act that had the most screaming going on,” Werner says, referencing the uproar he witnessed during live lectures in high-tax states like New York and California. “They were really angry.”
While early rumors suggested the SALT cap might rise dramatically—perhaps even to $40,000—the current proposal sets the limit at $30,000 for married filing jointly and $15,000 for married filing separately, tripling the current $10,000 cap. That might sound like a win… until you read the fine print.
This expanded deduction phases out for higher-income taxpayers:
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$200,000 AGI for married filing separately
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$400,000 AGI for everyone else
So if your clients are in the upper brackets? They’re not likely to benefit much—if at all.
“Once again, big fat marriage penalties here,” Werner notes with characteristic candor. “If you’re making a significant amount of income, this SALT limitation change is not going to be good for you.”
This isn’t a wait-and-see moment. Werner emphasizes that CPAs and tax advisors need to run the numbers now—not during tax season.
“We don’t want this to be a client comes to you in March and then they’re in for a rude awakening when they thought they’d get a better deduction—and they don’t,” he warns.
The proposed change could become a client communication nightmare—and proactive advisors need to act today to avoid costly surprises tomorrow.