Guides to the new Schedule 1-A deductions
Plain-language explanations of no tax on tips, no tax on overtime, the car loan interest deduction and the enhanced senior deduction — who qualifies, how the phase-outs work and what records to keep.
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.
Schedule 1-A Walkthrough: How the New Form Fits Into Form 1040
A part-by-part tour of Schedule 1-A, the new form for the tips, overtime, car loan interest and senior deductions — what each part asks for, where the numbers come from and where the total goes.
Adjusting Withholding for the New Deductions: Bigger Paychecks or Bigger Refunds?
How the Schedule 1-A deductions interact with paycheck withholding, when updating Form W-4 makes sense, how to use the IRS Tax Withholding Estimator and the risks of under-withholding.
Records to Keep for the New Deductions: A Checklist by Deduction
What to save for each new deduction — W-2 tip and overtime reporting, Form 4137, tip logs, pay stubs, VIN, purchase contract, lender interest statements and proof of age — and how long to keep it.
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.