What sort of SALT itemized deductions might be available for a 23 year old recent graduate who pays a fair amount of interest on student loans every year?

[VolvoGirl · Accepted solution]

SALT is State And Local Tax.  Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

FAQ on 2018 changes https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind

[VolvoGirl]

Unless you have mortgage interest, Charity, 10,000 of state taxes and a lot of medical you will probably just take the Standard Deduction.  And you can still deduct student loan interest in addition the Standard Deduction.
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[darvon12]

Thank you, very helpful color!

[Anonymous]

salt deduction if itemizing is limited to $5,000

[VolvoGirl]

@TaxPro+40  SALT is Only 5,000 you are filing as MFS Married filing Separate.  Otherwise for Single and Joint it max is 10,000.

[Hal_Al]

The student interest deduction is not an itemized deduction. Technically, it is an "adjustment to income"; also called an "above the line" deduction. 

That is, you may deduct student loan interest and still use the standard deduction.  You do not have to itemize deductions to get the student loan interest deduction. 

The student loan interest deduction is limited to $2500 maximum. You may not claim the student loan interest adjustment (deduction) if you are claimed as  a dependent by someone else.

[Zbucklyo]

Student loan interest is not a SALT item.  It is deducted not as an itemized deduction on Schedule A, but on Line 33 of Schedule 1.  The SALT taxes are state and local income taxes, typically either income tax or sales taxes, and property tax.