Section 1 Short title
This Act may be cited as the “SALT Fairness for Working Families Act”.
SALT Fairness for Working Families Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the limitation on the amount individuals can deduct for certain State and local taxes.
Sec. 2 Increase in limitation on deduction for certain State and local taxes of individuals
In general— Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by striking “$10,000 ($5,000 in the case of a married individual filing a separate return)” and inserting “$15,000 (twice such amount in the case of a joint return)”.
Inflation adjustment— Section 164(b) of such Code is amended by adding at the end the following new paragraph:
“(7) Inflation adjustment—In the case of any taxable year beginning after December 31, 2021, the $15,000 amount in paragraph (6)(B) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2020” for “calendar year 2016” in subparagraph (A)(ii) thereof.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2020.