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State and Local Tax (SALT) Deduction

A federal tax rule that allows taxpayers to subtract the amount they paid in state and local income, sales, and property taxes from their income before calculating their federal tax bill.

Internal Revenue Code of 1986

The collection of laws that govern federal income taxes in the United States, administered by the Internal Revenue Service (IRS).

Taxable Year

The period, typically 12 months, for which taxes are calculated, usually a calendar year for most individual taxpayers.

Joint Return

A single tax return filed by a married couple that combines their incomes, deductions, and credits.

Deduction

An amount that can be subtracted from your gross income to reduce the amount of income subject to tax.

Itemize Deductions

When a taxpayer lists out specific deductible expenses on their tax return instead of taking the standard deduction, in order to lower their taxable income.