PTETaxDesk / 2026 State PTET & $40k SALT Guides / $425,000 K-1 Income ($515,000 MAGI): 2026 $40k SALT Cap vs. Federal & State Average PTET Calculator
$425,000 K-1 Income ($515,000 MAGI): 2026 $40k SALT Cap vs. Federal & State Average PTET Calculator
How much does PTET save at $425,000 K-1 income in 2026?
At $425,000 in pass-through K-1 income and $515,000 in household MAGI, your 2026 personal Schedule A SALT deduction cap is $35,500 (after a $4,500 phase-down above $500,000 MAGI). Electing entity-level PTET deducts $25,500 above the line under IRS Notice 2020-75, saving up to $8,925 in federal income tax while preserving the $32,200 MFJ standard deduction.
At $425,000 in pass-through K-1 income and $515,000 in household MAGI, your 2026 personal Schedule A SALT deduction cap is $35,500 (after a $4,500 phase-down above $500,000 MAGI). Electing entity-level PTET deducts $25,500 above the line under IRS Notice 2020-75, saving up to $8,925 in federal income tax while preserving the $32,200 MFJ standard deduction.
Open Pre-Filled $425,000 K-1 / $515,000 MAGI PTET Calculator
2026 $40,000 SALT Cap vs. Entity PTET Comparison ($425,000 K-1)
| 2026 Tax Metric | Amount |
|---|---|
| Pass-Through K-1 Net Income | $425,000 |
| Household MAGI (Pre-PTET) | $515,000 |
| 30% SALT Cap Phase-Down Above $500,000 MAGI | -$4,500 |
| Remaining Personal Schedule A SALT Cap | $35,500 |
| Entity-Level PTET Deduction (IRS Notice 2020-75) | $25,500 (Uncapped!) |
Frequently Asked Questions
Should I elect PTET at $425,000 pass-through income and $515,000 MAGI in 2026?
At $425,000 in pass-through K-1 income and $515,000 in household MAGI, your 2026 personal Schedule A SALT deduction cap is $35,500 (after a $4,500 phase-down above $500,000 MAGI). Electing entity-level PTET deducts $25,500 above the line under IRS Notice 2020-75, saving up to $8,925 in federal income tax while preserving the $32,200 MFJ standard deduction.