Which clients will be most affected?
This tax law change does not directly affect everyone. The new SALT restriction specifically affects your clients who itemize their deductions on their tax return.
The new limit will have the most significant impact on taxpayers living in states with high income and property tax like California, New York, New Jersey, New Hampshire, Connecticut, and Oregon.
The $10,000 cap applies to most filing statuses. Married couples, consequently, will feel the impact more than singles. For instance, your clients who file as single can deduct up to the full $10,000 amount, but for clients who are married filing jointly, the maximum allowed is still $10,000 per return. Even if a client and spouse file separately, they can only deduct up to $5,000 each, for a total of $10,000.