What’s New

State and local tax (SALT) deduction limit increased.

The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately). See the instructions for line 5e.

New Schedule 1-A (Form 1040).

Recent legislation provided four new deductions that take effect beginning in 2025. These new deductions are no tax on tips, no tax on overtime, no tax on car loan interest, and the enhanced deduction for seniors. If you are eligible, you can claim these deductions even if you itemize on Schedule A. If you are eligible, you will claim these deductions on Schedule 1-A, not on Schedule A. For more information, see the instructions for Schedule 1-A.

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What’s New

Official source

State and local tax (SALT) deduction limit increased.

The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately). See the instructions for line 5e.

New Schedule 1-A (Form 1040).

Recent legislation provided four new deductions that take effect beginning in 2025. These new deductions are no tax on tips, no tax on overtime, no tax on car loan interest, and the enhanced deduction for seniors. If you are eligible, you can claim these deductions even if you itemize on Schedule A. If you are eligible, you will claim these deductions on Schedule 1-A, not on Schedule A. For more information, see the instructions for Schedule 1-A.