“Recent changes to the SALT deduction rules mean Spirit AeroSystems Holdings employees may benefit from taking a fresh look at whether itemizing or the standard deduction better aligns with their broader income and retirement picture, especially as thresholds, phaseouts, and future sunsets come into play,” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“Given the higher SALT deduction limits and shifting phaseouts, Spirit AeroSystems Holdings employees may find value in periodically reassessing how deductions, retirement contributions, and income timing work together within a broader long-term plan,” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. How recent changes to the SALT deduction cap may affect itemizing versus taking the standard deduction.

2. Which taxpayers, including Spirit AeroSystems Holdings employees, may be most impacted by updated income thresholds and phaseouts.

3. How SALT rules interact with other deductions and income reduction strategies when evaluating overall tax planning.

When the state and local tax (SALT) deduction was reduced to $10,000 under the 2017 Tax Cuts and Jobs Act (TCJA), with a $5,000 cap for married individuals filing separately, it changed the way many taxpayers filed their annual taxes. In fact, combined with a significant increase in the standard deduction, it led many taxpayers—including Spirit AeroSystems Holdings employees—to stop itemizing and instead rely on the standard deduction.

Now, however, recent tax law updates have increased the SALT deduction cap to $40,000 for single filers and married couples filing jointly, and to $20,000 for married individuals filing separately. These higher limits begin to phase down for taxpayers with modified adjusted gross income above $500,000 ($250,000 for married filing separately), though the cap does not fall below $10,000 ($5,000 for married filing separately). The SALT cap and income thresholds are scheduled to increase by 1% annually through 2029, after which the cap is set to revert to $10,000, which may be relevant for Spirit AeroSystems Holdings employees evaluating long-term tax planning.

Starting in 2026, itemized deductions for taxpayers in the top 37% federal income tax bracket will be limited to a tax benefit of 35 cents per dollar deducted. ¹  This change may reduce the marginal value of itemizing for those in the highest bracket and may influence how Spirit AeroSystems Holdings employees with higher earnings evaluate deductions.

These changes are generally expected to benefit individuals with higher incomes who live in high-tax states, particularly those who already itemize. They may also prompt some Spirit AeroSystems Holdings employees who previously used the standard deduction to re-evaluate whether itemizing could be more favorable based on their personal tax profile.

What Are State and Local Taxes?

State and local taxes can include state or local income taxes, general sales taxes, and property taxes. While some states do not levy a broad tax on wage income, all states collect revenue in some form. Spirit AeroSystems Holdings employees with higher earnings and larger property tax obligations are often among those who see the greatest impact from changes to the SALT deduction.

How Itemizing Can Affect Deductions

In addition to SALT, commonly claimed itemized deductions include mortgage interest, charitable contributions, certain medical expenses, and losses tied to federally declared disasters. Medical expenses are deductible only to the extent they exceed 7.5% of adjusted gross income ²  and cannot include costs paid through a flexible spending account (FSA) or health savings account (HSA), which can be an important detail for Spirit AeroSystems Holdings employees reviewing benefit elections.

For the 2025 tax year, the federal standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. Whether itemizing results in lower taxable income depends on the total amount of available deductions and individual circumstances.

Considerations for Married Filers

Married couples filing jointly share a single SALT deduction cap. Unlike federal tax brackets and standard deductions, state tax brackets do not always scale proportionally for married filers. As a result, married Spirit AeroSystems Holdings employees may need sufficient additional itemized deductions—such as mortgage interest or charitable giving—for itemizing to be advantageous.

Other Ways to Reduce Taxable Income

Regardless of whether a taxpayer itemizes or takes the standard deduction, other strategies may reduce taxable income. These can include contributions to employer-sponsored retirement plans or deductible traditional IRAs, subject to eligibility rules. Contributions to an HSA paired with a qualifying high-deductible health plan may also lower taxable income, and qualified HSA withdrawals for medical expenses are tax-free, which can be part of broader planning for Spirit AeroSystems Holdings employees.

Some employers also offer nonqualified deferred compensation plans, which may allow eligible participants to defer a portion of compensation and delay income taxation until distributions occur.

Additionally, for tax years 2025 through 2028, individuals age 65 and older may qualify for an extra $6,000 deduction per eligible person, whether or not they itemize. ³  This amount is in addition to existing age-based standard deductions and begins to phase out at $75,000 of income for single filers and $150,000 for married couples filing jointly.

Bottom Line

While the standard deduction will remain the better option for many taxpayers, the higher SALT cap and related changes may make itemizing worth another look for some filers. Reviewing deductions under current tax rules can help clarify which approach aligns best with individual circumstances.

Spirit AeroSystems Holdings employees can review how these tax changes may fit into a broader retirement and income strategy with help from The Retirement Group. To speak with a specialist, call  (800) 900-5867 .

Most Spirit AeroSystems Holdings employees don't realize how much their employer's plan affects retirement planning until they're in the middle of making a decision. Taking stock of what the company provides now saves you from costly surprises later.

The retirement plan at Spirit AeroSystems Holdings is worth understanding in detail: The company offers competitive retirement benefits including employer-sponsored savings plans designed to help employees build long-term financial security alongside Social Security benefits. Equally important is the healthcare picture. Your health plan elections during open enrollment, any HSA you're building, and whether retiree medical coverage or COBRA will bridge you to Medicare all factor into retirement planning.

The value of getting this right is significant: small differences in timing, contribution rates, and election choices at Spirit AeroSystems Holdings can compound into meaningful income differences over the course of retirement. That's especially true for retirement planning.

Sources:

1. “How the New SALT Deduction Cap Could Affect Your Taxes.”  Fidelity , Fidelity Investments,
https://www.fidelity.com/learning-center/personal-finance/SALT-deduction-increase .
Accessed 3 Feb. 2026. 

 2. Internal Revenue Service.  2025 Instructions for Schedule A (Form 1040) . U.S. Department of the Treasury, 2025,
https://www.irs.gov/pub/irs-pdf/i1040sca.pdf .
Accessed 3 Feb. 2026.

3. Frankel, Matthew. “How Do I Get the Extra $6,000 ‘Senior Bonus’ This Tax Season?”  MarketWatch , 1 Feb. 2026,
https://www.marketwatch.com/story/how-do-i-get-the-extra-6-000-senior-bonus-this-tax-season-8ce0dfd0 .
Accessed 3 Feb. 2026.

4. “OBBBA: Ten Tax Law Changes Taking Effect in 2026.”  Franklin Templeton , 21 Jan. 2026,
https://www.franklintempleton.com/articles-us/retirement/obbba-ten-tax-law-changes-taking-effect-in-2026 .
Accessed 3 Feb. 2026.

5. Quinn, Tina Orem. “Standard Deduction 2025–2026: Amounts, How It Works.”  NerdWallet ,
https://www.nerdwallet.com/taxes/learn/standard-deduction .
Accessed 3 Feb. 2026.