3 Key Questions to Ask Before You Count on a Bigger Refund

1. Should You Itemize or Take the Standard Deduction?

Even with the higher SALT cap, the standard deduction is also expected to increase. For homeowners in high-tax states, itemizing will likely become more attractive. But if you live in a low- or no-income-tax state like Florida or Texas, the difference may be minimal.

2. What’s Your Income Level?

High earners may not benefit. If your income exceeds $600,000 (or $300,000 if married filing separately), the SALT cap increase may not apply, depending on how the final rules are implemented.

3. How Much Have You Already Paid in Taxes?

A tax refund isn’t a bonus—it’s money you’ve already paid in. If you haven’t made significant tax payments throughout the year (for example, if you’re self-employed and underpaid estimated taxes), the higher deduction may not translate into a larger refund.