Tax deductions might go up. Would you benefit?

By Lauren Schwahn, NerdWallet

House Republicans passed President Donald Trump’s “ one big, beautiful bill ” on May 22.

This meaty budget reconciliation bill includes a provision to increase the state and local tax, or SALT, deduction limit. If the changes make it through the Senate, certain taxpayers could see big tax breaks.

What is the SALT cap?

The SALT deduction is a tax break that allows people who itemize to deduct certain taxes from their federal taxable income. Eligible deductions include property taxes and a choice of state and local sales taxes or state and local income taxes.

The SALT deduction is currently capped at $10,000 ($5,000 for those married filing separately) and is set to expire at the end of 2025.

What might change?

The House bill would raise the SALT cap