THE EVERETT ADVOCATE – FRiDAy, July 11, 2025 Page 17 BEACON | FROM PAGE 16 STUDENT ID CARDS AND SUIThe salt deduction increase resident Trump signed off on the big beautiful bill on July 4, 2025. This legislation contained many various provisions, not just tax provisions. However, one big tax provision was the increase in the SALT (State and Local Tax) deduction. Since the Tax Cuts & Jobs Act enacted in 2017, this deduction was limited to $10,000 as an itemized deduction on Schedule A. A taxpayer added up his or her state income taxes, excise taxes and real estate taxes in order to include on Schedule A. However, the amount actually deducted could not exceed $10,000. Many taxpayers pay far in excess of $10,000 in those types of taxes, especially for taxpayers in states such as Massachusetts, New Jersey, New York and California. With the 2025 standard deduction at $30,000 for a married couple ($33,200 for a married couple if both are 65 years of age or older), with such a limit on the SALT deduction under the old law, many taxpayers would take the standard deduction because the total of their SALT deduction, charitable contributions, medical expenses and mortgage interest would not exceed the standard deduction. For a single person, the 2025 standard deduction is $15,000 ($17,000 if 65 years of age or older). This new law now allows taxpayers to claim up to $40,000 in SALT deductions thereby putting them in a better position to itemized their deductions. The SALT deduction for 2025 begins to phase out for taxpayers who have income of $500,000 or more. The $40,000 SALT deduction limit as well as the $500,000 income limit are increased by 1% per year up until December 31, 2029. For calendar year 2030, the SALT deduction will revert back to P $10,000. The $40,000 SALT deduction is phased out as your income exceeds $500,000 by an amount equal to 30% of the excess income amount. As an example, if your 2025 income is $600,000, the phase out of the SALT deduction would be equal to 30% of $100,000, or $30,000, leaving you with a SALT deduction of only $10,000. The SALT deduction is completely phased out with income of $633,333 as $133,333 x 30% equals $40,000. It is difficult to claim medical expenses for most taxpayers as an itemized deduction as they must exceed 7.5% of your adjusted gross income before you get to deduct one dollar worth of medical expenses. Prior to this most recent legislation, the vast majority of taxpayers ended up taking the standard deduction. This new bill will allow many more taxpayers to itemize their deductions on Schedule A. However, the state income deduction and real estate tax deduction will have to be higher than the standard deduction, unless there are charitable contributions and medical expenses that bring you over that threshold. The new bill also preserved the end-around for the state income tax deduction wherein many states enacted tax legislation that allows for pass through entities such as S Corporations and LLC’s to pay the state income tax based upon the earnings of the business and take a deduction on the federal return at the entity level. Then, the individual owner can take a tax credit on his or her personal return equal to 90% (in Massachusetts) of the state income taxes actually paid by the entity. We’ll just have to see how this all plays out this upcoming tax season after the first of the year. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. CIDE LINE (H 2221/S 1384) – Would require that newly printed student ID cards for public school students in grades 6-12 and students in public colleges, include the 988 Suicide and Crisis Lifeline phone numbers and text message numbers. The line directs all callers to trained call takers who are available to provide free, confidential emotional support for those in crisis. The measure allows schools that have a supply of unissued student identification cards that do not comply with this new requirement, to issue the old student identification cards to students until the remaining supply is depleted. In 2024, the House and Senate approved different versions of the bill, but the legislative session ended before the two sides could agree on a version. “We must ensure that every student has the information and access they need to receive critical support and resources,” said House sponsor Rep. Jack Lewis (D-Framingham). “Reaching out for help can be difficult, and findBEACON | SEE PAGE 19 OBITUARY ~ 4th Year Anniversary ~ Marguerite P. Bruno “Peggy” April 20, 1925 - July 16, 2021 Miss You Mom! Forever in Our Hearts and Prayers. Your Loving Family
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