CBS News: “With less than a week of tax season to go, plenty of taxpayers are still sorting through the new regulations signed into law by the Tax Cuts and Jobs Act. But middle-class homeowners who live in high-tax areas are finding themselves particularly hard-hit. Many owe thousands this year, rather than the refunds they usually received.”
“Their problem sits with the new deduction cap on state and local taxes, which the law caps at $10,000. Before 2018, taxpayers were allowed to deduct their total combined state and local taxes from their federal taxes, softening the blow of high property and income taxes in states like New Jersey and California.”
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