I've seen many people have same issue, and I was able to fix it. But unfortunately this problem repeats when I reboot my machine. This started few days ago when I updated my system.
Solution was to login via TTY nad remove .Xauthority file.
When I try to login I'm returned to back to login.
ls -ld .Xauthority -rw------- 1 vito vito 0 Jan 31 00:07 .Xauthority
Maybe I have to explain that I have encrypted home folder, therefore I have to mount it first. After I mount it with command ecryptfs-mount-private I am able to login.