A tax provision that is part of Trump’s Tax Law in 2017, the Tax Cuts and Jobs Act could be in line for a last-minute revision, meaning it can deliver bigger tax refunds this 2024 to millions of Americans.

The so-called state and local tax deduction, or the SALT deduction will revise the Trump Tax Law

The Trump Tax Law limited tax refunds to $10,000. But a new proposal to revise the Trump Tax law would lift the cap to $20,000 for married couples, with the change retroactive for the 2023 tax year. If it moves forward, the proposal revision for the Trump Tax Law could deliver larger 2024 tax refunds to millions of married taxpayers.

Before the SALT deduction cap, taxpayers could deduct all their state and local taxes from their federal taxes, a tactic that some lawmakers have criticized as mostly benefiting wealthy people in states with high taxes, such as the states of New York and California.

The cost of doubling the SALT cap to $20,000 for married filers would reduce federal tax revenue by about $12 billion. By comparison, the SALT deduction cost the federal government $69 billion in tax revenues in 2017, the year before the $10,000 limit went into effect.

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How the SALT change would work?

The proposed law called the SALT Marriage Penalty Elimination Act, would increase the cap on state and local tax deductions from $10,000 to $20,000 but only for the 2023 tax year.

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