Core Points - The new federal law increases the SALT deduction limit to $40,000 per household from the previous $10,000, reverting back to the lower limit in 2030 [1] - Single filers and married couples filing jointly can claim the full $40,000 deduction, while married couples filing separately have a maximum deduction of $20,000 [2] - A modified gross income below $500,000 is required to claim the SALT deduction, with a phase-down starting at $500,000 compared to the previous $600,000 cap [2] Tax Strategies - Itemizing deductions is recommended, especially for those in high-tax states, with categories including medical expenses, home mortgage interest, charitable contributions, and disaster-related losses [4] - Contributions to retirement accounts can help reduce modified adjusted gross income, keeping taxpayers below the phaseout threshold [5] - Timing income strategically can maximize SALT deductions, such as deferring large deposits or prepaying property taxes and charitable contributions [7]