The new cap on state and local tax (SALT) deductions faces a court test. Starting with 2018 returns, individual filers can deduct on Schedule A state and local income taxes or sales taxes, plus property taxes, up to a $10,000 limit. Conn., Md., N.J. and N.Y…all high-tax states…are suing the U.S. government. They challenge the $10,000 cap as unconstitutional, claiming that it interferes with states’ sovereign rights to make their own tax and spending choices for residents. They say that the SALT write-off changes were enacted by congressional GOPers and the president to compel high-tax states to revise their tax and fiscal policies. Legal experts generally predict low odds of success for the states here. IRS got $320 million from Congress in 2018 to implement the new tax law. It’s on track to get $77 million more for 2019 in the House’s IRS budget bill. The agency will most likely use the extra funds for updating its computer systems to account for the tax changes, as well as for taxpayer assistance and guidance.