What changed in 2025
The One Big Beautiful Bill Act, signed July 4, 2025, added four temporary deductions to the federal tax code. They share the same DNA: each is claimed on the new Schedule 1-A (Form 1040), each is available whether you take the standard deduction or itemize, each requires a valid Social Security number, each requires married couples to file jointly, and each phases out above an income threshold. All four apply to tax years 2025, 2026, 2027 and 2028, then expire unless Congress extends them.
| Deduction | Max | Phase-out begins (single / joint) |
| Qualified overtime | $12,500 / $25,000 joint | $150,000 / $300,000 |
| Qualified tips | $25,000 | $150,000 / $300,000 |
| Car loan interest | $10,000 | $100,000 / $200,000 |
| Seniors 65+ | $6,000 per person | $75,000 / $150,000 |
Can you claim more than one?
Yes. A 66-year-old bartender who works overtime and financed a new US-built pickup in 2025 could claim all four on one return. Each has its own cap and its own phase-out; they don't reduce each other.
When you'll see the money
For 2025, employer withholding didn't change, so most people get these deductions as a larger refund when they file in early 2026. For 2026, the IRS updated withholding, so some of the benefit may show up in paychecks. Either way, the deductions are claimed on your annual return — there's nothing to apply for.
What these calculators do — and don't do
Each calculator applies the actual rules from the IRS Schedule 1-A instructions: the caps, the phase-out formulas (including the IRS rounding conventions), and the federal bracket tables for the year you select. They assume you take the standard deduction and estimate federal income tax only. They don't compute state taxes, credits, or every edge case. Think of the result as a solid estimate to plan around, then confirm with your tax software or preparer.