Brind.
  1. The Federal government passed a Tax Reform Bill on July 1, 2026.
  2. The House of Representatives and Donald Trump are negotiating tax reform aimed at increasing the SALT Deduction.

IRS Notice Allows S Corporations to Deduct State Income Tax

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IRS Notice 2020-75 allows S Corporations to deduct state income tax through what is called a pass-through entity tax, or PTET. This payment is made by the business itself and does not count against the owner’s personal SALT cap.

From 247wallst.com

Why it matters

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This provision offers a federal workaround for business owners in high-cost states. The deduction bypasses the personal limitation amount on state and local tax deductions, which has been subject to a phasedown for high earners following the One Big Beautiful Bill Act.

The Federal government passed a Tax Reform Bill on July 1, 2026, which raised the federal cap on state and local tax deductions but included a phasedown that shrinks the increase for high earners.

From 247wallst.com

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The House of Representatives and Donald Trump are negotiating tax reform aimed at increasing the SALT Deduction. All 1 developments

Within The Federal government passed a Tax Reform Bill on July 1, 2026.

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