New SALT deduction in 2025 tax code

[Greta]

It's 40K for income under $500,000. Does anyone know if the 500K is the AGI or MAGI that includes tax free income?

[TaxGuyBill · Accepted solution]

It is MAGI, but the "modified" only adds back Foreign Earned income (and from territories and Puerto Rico).

"For purposes of this paragraph, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933’’.

[BobKamman]

@TaxGuyBill  beat me to it by a minute.  While I was checking that MAGI is the same definition for the "senior" deduction,  tip income deduction, and overtime deduction.  

[Taxes-by-Rocky]

On a related topic, trying to extract data from my ProSeries client data files to see who might be affected by the OBBBA and how/why.  I'm aware of the Client Analyzer Queries function from HomeBase but that function is rarely updated for current tax law issues, etc.  [I do realize the Tax Planner tool gets updated from time to time which is helpful.]

To that end, does anyone know how to run queries on the ProSeries database files?  Or, is there another function in ProSeries (other than the Client Analyzer Queries) that can do this?  [For example, who hit the SALT cap, how much were they over, and did they have mortgage interest and/or charitable deductions?]  While I'm not suggesting it, even a download to Excel would go a long way.  Thanks in advance.

[Skylane]

They are likely still subject to AMT which should wipe out the SALT deduction dollar for dollar.