What do you know about State & Local Taxes (SALT)?
Due to the recent tax overhaul, there is now a limitation placed on State and Local Tax (SALT) deductions. New for 2018 taxpayers’ itemized deductions for certain categories of state and local tax are capped to a total of $10,000 for married joint filers / $5,000 for married separate filers.
Many people wonder whether a move from OR to WA is a good idea – here are the pros and cons to SALT to consider before making a move.
Reasons to Move to Washington
• No state income tax.
• WA sales tax is lower than OR income tax so there’s a possibility to fall below the SALT limitation.
• Eat local! Washington produces more apples, pears, red raspberries and sweet cherries than any other state.
Reasons to Stay in Oregon
• When working in Oregon but living in Washington, a Non-Resident income tax return must be filed to pay Oregon taxes on the money earned in Oregon.
• If not actually residing in WA full time, there is a risk of being “relocated” back to Oregon for tax purposes.
• The commute between Oregon and SW Washington.
We recommend always talking to a tax professional before moving across state lines for tax advantages. Brown & Brown clients get a discount on all tax services from our friends at Tax Matters. Contact your BBNW insurance agent for a discount code!
As always, thank you!
From your team at Brown & Brown Northwest Insurance