Your Pass-Through Deduction May Expire in 2026
Some states allow pass-through entities to pay state income tax at the entity level which may exceed the SALT cap. However, this deduction will expire after 2025 for those states.
The Tax Cuts and Jobs Act of 2017 eliminated the ability for taxpayers to deduct an unlimited amount of state income taxes. Instead, the Act placed a $10,000 cap on this deduction for both single and married taxpayers.
There is an Act in the House that would double this for married taxpayers, but it may not pass.