How much do the 2025 tax rules save you?
The One Big Beautiful Bill Act created four new deductions for 2025–2028. Enter what applies to you — this combines all of them, applies each phase-out, and estimates your total federal income tax savings.
Updated for tax year 2025 · combines tools tips, overtime, car loan + senior
These are federal income-tax deductions, not credits — they reduce taxable income, so the cash benefit is deduction × marginal rate. FICA and state taxes are unaffected by tips/overtime portions. Educational estimate, not tax advice.
The four deductions at a glance
| Deduction | Max | Phase-out begins (single / joint) |
|---|
| Qualified tips | $25,000 | $150k / $300k |
| Overtime (premium half) | $12,500 / $25,000 | $150k / $300k |
| Car loan interest | $10,000 | $100k / $200k |
| Senior (per person 65+) | $6,000 | $75k / $150k |
How the calculation works
Each deduction is capped, then independently reduced by its own MAGI phase-out ($100 per $1,000 over the threshold). The four results are summed, and your estimated cash savings is the total deduction times your federal marginal rate. Phase-outs use the same modified-AGI figure for all four.
FAQ
Can I claim more than one?
Yes. They're independent above-the-line deductions; claim every one you qualify for.
Are these permanent?
No — they apply to tax years 2025 through 2028 under current law.
Do I need to itemize?
No. All four are available without itemizing.