You Won’t Be Getting This Tax Deduction in NJ
Hopes for a bigger property tax deduction on your federal income tax return have been dashed by the U.S. Supreme Court.
Justices refused to hear a lawsuit brought by New Jersey, New York, Maryland, and Connecticut that sought to have the cap on state and local tax (SALT) thrown out.
The $10,000 cap was imposed by former President Donald Trump's administration and disproportionately hit high tax states like New Jersey.
Garden State lawyers argued that point and alleged the cap illegally encroached on their own taxing authority.
By rejecting the suit, the high court left the decision to Congress.
New Jersey congressional members Bill Pascrell, Josh Gottheimer, and Mikie Sherrill formed a so-called SALT caucus after President Joe Biden refused to address the cap.
The caucus was successful in getting legislation passed in the house to raise the cap, but the bill stalled in the senate.
It's unclear what happens next.
New Jersey U.S. Senator Bob Menendez has worked with fellow democrats to try and craft a bill that would gain enough votes in the senate, but those efforts have also stalled.