The One Big Beautiful Bill Act — signed July 4, 2025 — added four brand-new tax deductions: no tax on tips (up to $25,000), no tax on overtime (up to $12,500 single / $25,000 joint), a $6,000 senior deduction for taxpayers 65+, and up to $10,000 in car-loan interest for new US-assembled vehicles. If you don't know about them, you can't claim them.
Eight provisions that actually change what you owe. Plain English, no jargon.
Deduct up to $25,000 in qualified tips, above-the-line — you don't need to itemize. Only in occupations where tipping is customary, phases out above $150k MAGI single / $300k joint. Payroll taxes still apply, and you must still report your tips.
Deduct the FLSA half-time premium — up to $12,500 single / $25,000 joint. Only the "extra half" of time-and-a-half counts, not your full overtime pay.
Taxpayers 65+ get an extra $6,000 deduction ($12,000 joint), on top of the standard deduction. Phases out 6¢ per dollar over $75k MAGI single / $150k joint — gone at $175k / $250k. Not available if married filing separately.
Interest on a loan for a new US-assembled vehicle is now deductible up to $10,000 — even if you take the standard deduction.
The state-and-local-tax deduction cap jumps to $40,000 for 2025 and $40,400 for 2026, growing 1% a year through 2029 — then back to $10k in 2030. Phases out at 30% of MAGI over $500k.
Children born 2025–2028 get a $1,000 Treasury-seeded savings account. A brand-new benefit most new parents haven't heard of.
For payments made after December 31, 2025, businesses only file 1099-MISC/NEC for payments of $2,000 or more — up from $600. Less paperwork for small businesses and freelancers.
For the first time, you can deduct charitable gifts ($1,000 single / $2,000 joint) even if you take the standard deduction.
Also in the law: the child tax credit rises to $2,200, the 2026 W-4 was redesigned, and the new deductions are claimed on Schedule 1-A.
$39 one-time · free updates through the 2028 sunsets
Educational information about the 2026 tax law. Not tax advice.
In-depth, plain-English explainers on every provision of the new tax law.
Qualifying occupations, reporting rules, phaseouts, and what changes on your W-2.
Why only the "extra half" counts — and how to estimate your deduction.
65+, $12k joint, and the 6-cents-per-dollar phaseout worked through.
Which children qualify, what the account is, and the steps to claim it.
Who files, who doesn't, and what freelancers should tell their clients.
The 1%-a-year growth, the $500k MAGI phaseout, and the 2030 cliff.
US-assembled requirement, new vehicles only, and how to claim it.
No. TaxShift provides educational information about the 2026 tax law in plain English. It is not tax, legal, or financial advice, and it doesn't replace a qualified tax professional (CPA or Enrolled Agent) for your specific situation.
Not necessarily — many of the new deductions are straightforward once you know the rules. But if your situation is complex (self-employment, phaseout ranges, multi-state income), a CPA or EA review is worth it.
The tips, overtime, senior, and car-loan interest deductions apply to tax years 2025–2028. Trump Accounts cover children born 2025–2028. The SALT cap grows 1% per year through 2029, then reverts to $10,000 in 2030. The Playbook includes a full 2028 sunset calendar.
States decide independently whether to adopt federal changes. The tips deduction, for example, may not reduce your state taxes even where it reduces federal taxes. Always check your state's current conformity — the Playbook includes a state-conformity checklist.
No — that's the point. The tips, overtime, senior, car-loan interest, and non-itemizer charitable deductions are all available whether you itemize or take the standard deduction. The new deductions are reported on Schedule 1-A.
Tax software helps you file. TaxShift helps you understand — which new tax-law provisions apply to you, what they're worth, and what to do before you file. Many people use both.
Yes. The deduction checker runs entirely in your browser. Nothing you enter is sent to us or stored anywhere.