What’s New

State and local tax deduction limit increased. The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately). Standard meal and snack rates applicable to United States territories. The standard meal and snack rate table provides the deductible costs for meals provided by family daycare providers. These amounts apply to U.S. territories (Guam, Puerto Rico, and the U.S. Virgin Islands) as well as to U.S. states. See Table 3, Standard Meal and Snack Rates, below.