No tax on tips, overtime & car loan interest calculators
Estimate the four new Schedule 1-A deductions for tax years 2025–2028 — qualified tips (up to $25,000), the FLSA overtime premium (up to $12,500 or $25,000 joint), new-car loan interest (up to $10,000) and the $6,000 senior deduction — with the exact phase-out rounding rules.
Calculators
No tax on tips calculator
Estimate the federal qualified tips deduction: up to $25,000 per return, reduced by $100 per $1,000 of MAGI over $150,000 ($300,000 joint). Free Schedule 1-A estimate.
No tax on overtime calculator
Work out the qualified overtime premium (the half in time-and-a-half), the $12,500 / $25,000 joint cap and the MAGI phase-out for the federal overtime deduction.
Car loan interest deduction calculator
Estimate interest paid this year on a new-car loan and the federal deduction: up to $10,000, US final assembly required, reduced $200 per $1,000 of MAGI over $100,000 ($200,000 joint).
Senior $6,000 deduction calculator
Estimate the enhanced senior deduction: $6,000 per person age 65+, reduced by 6% of MAGI over $75,000 ($150,000 joint), on top of the regular additional standard deduction.
Schedule 1-A combined estimator
Combine all four new Schedule 1-A deductions and estimate the change in 2026 federal income tax using the 2026 standard deduction and brackets.
Popular guides
No Tax on Tips Explained: Who Qualifies and How Much You Can Deduct
A plain-language guide to the qualified tips deduction for 2025–2028: tipped occupations, voluntary tips vs service charges, the $25,000 cap, MAGI phase-out and reporting.
No Tax on Overtime Explained: The FLSA Premium, Caps and Examples
Why only the half in time-and-a-half is deductible, how the $12,500 / $25,000 cap and phase-out work, and what happens with double time, state overtime and exempt employees.
Car Loan Interest Deduction Explained: New, US-Assembled Vehicles Only
Who can deduct up to $10,000 of car loan interest for 2025–2028: new vehicles with US final assembly, loans after 2024, personal use, the VIN requirement and the $200-per-$1,000 phase-out.
The $6,000 Senior Deduction Explained: Age, Phase-Out and Social Security
How the enhanced deduction for people 65 and older works for 2025–2028, how it stacks with the additional standard deduction, the 6% MAGI phase-out and what it means for Social Security.
MAGI Phase-Outs for the New Deductions: Rounding Rules Compared
Side-by-side guide to the four Schedule 1-A phase-outs: thresholds, reduction rates, round-down vs round-up rules, what MAGI includes and worked examples.
What the New Deductions Do Not Do: FICA, AGI, Credits and State Tax
The new Schedule 1-A deductions cut federal income tax only. They do not reduce Social Security or Medicare tax, AGI, the taxable part of Social Security, or necessarily state tax — and they expire after 2028.
How we work
NewDeduct is an independent publisher, not a tax preparer or the IRS. We translate IRS newsroom guidance, the Schedule 1-A structure and the final regulations into browser calculators, cite every source, and keep your inputs on your device.
Frequently asked questions
Are tips and overtime now completely tax-free?
No. They remain subject to Social Security and Medicare tax and are still reported as income. For tax years 2025 through 2028, eligible workers can take a federal income tax deduction for part or all of them on Schedule 1-A, subject to caps and income phase-outs.
Do I have to itemize to claim these deductions?
No. The IRS says the tips, overtime, car loan interest and senior deductions are available whether you take the standard deduction or itemize. They are claimed on Schedule 1-A and flow to Form 1040.
Is NewDeduct tax advice?
No. NewDeduct is an independent publisher, not a tax preparer or the IRS. The calculators are educational estimates built from IRS guidance; confirm your situation with the IRS instructions or a qualified professional.