Tax expert: 'Big, beautiful' law will change the way many Long Islanders file returns
The new law raises the cap on state and local tax deductions from $10,000 to $40,000 for most Long Island homeowners -- with further increases every year until 2029.
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Republicans say the "big beautiful bill," which is now law, will result in big savings for the average Long Island taxpayer. Democrats argue President Donald Trump's signature legislation will result in harmful cuts. But as both sides still work to point out the perceived pros and cons of the legislation, tax specialist Ed Slott says on Long Island, the very way many homeowners file their taxes is likely to change.
"More people will be taking itemized deductions actually this year because of the new SALT deduction that's available now, that's state and local taxes," said Ed Slott, CPA and financial advisor.
As News 12 has reported at length, the new law raises the cap on state and local tax deductions from $10,000 to $40,000 for most Long Island homeowners -- with further increases every year until 2029.
"It grows by 1% every year. So we built in a little inflation adjustment there as well as the income number grows in by 1%," Rep. Andrew Garbarino (R- Bayport) said.
Slott says that for many, the initial increase on the SALT cap alone will allow those who itemize their taxes to receive a greater return than those who choose the standard deduction instead.
"It gets you in the arena of itemizing your deductions, which you probably couldn't do before. Most people took the standard deduction," Slott said.
"Once you're in the club, you can add on your mortgage interest. Charitable contributions will become deductible again. They were deductible in the past, but most people didn't itemize. Most Long Islanders now will be able to."
