Family Tax Deduction Improvement Act

Family Tax Deduction Improvement Act

This bill amends the Internal Revenue Code to modify the limit on individual deductions for certain state and local taxes, which is currently $10,000 per year ($5,000 for a married taxpayer filing a separate return). The bill doubles the limit for married individuals and requires the limit to be adjusted for inflation after 2019.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5913 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5913

 To amend the Internal Revenue Code of 1986 to increase the limitation 
 on the State and local tax deduction for married individuals, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2018

    Mr. MacArthur (for himself and Mr. Fitzpatrick) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the limitation 
 on the State and local tax deduction for married individuals, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Tax Deduction Improvement 
Act''.

SEC. 2. INCREASE IN LIMITATION ON STATE AND LOCAL TAX DEDUCTION FOR 
              MARRIED INDIVIDUALS.

    (a) In General.--Section 164(b)(6)(B) of the Internal Revenue Code 
of 1986 is amended by striking ``($5,000 in the case of a married 
individual filing a separate return).'' and inserting ``(twice such 
amount in the case of a joint return)''.
    (b) Inflation Adjustment.--Section 164(c) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(7) Inflation adjustment.--In the case of any taxable 
        year beginning after 2019, the $10,000 amount in paragraph 
        (6)(B) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section (1)(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2018' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
        If any increase under this subparagraph is not a multiple of 
        $100, such increase shall be rounded to the next lowest 
        multiple of $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2018.
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