Feb. 27 (UPI) -- A cap on the amount of state and local tax deductions Americans can take on their federal tax returns will affect nearly 11 million taxpayers, a Treasury Department watchdog audit released Wednesday indicates.
The new $10,000 cap put in place by the 2017 Tax Cuts and Jobs Act will prevent the taxpayers from deducting about $323 billion in state and local tax payments, the Treasury Inspector General for Tax Administration said in its report. The audit said the new rule will primarily affect residents in high-tax states like California and in the Northeast.