01/18/2026
📢 2025 Tax Deductions You Should Know About
For 2025 TY, several above the line deductions are available on Schedule 1-A, meaning you can claim them even if you take the standard deduction.
Here’s a quick breakdown 👇🏾
💵 No Tax on Tips
Deduction for qualified tip income
Must file married filing jointly if married
2025 tax forms do not separately list tips, but the requirement is met if tips are included in total reported income
Maximum deduction: $25,000 total (combined for spouses)
⏱️ No Tax on Overtime
Overtime pay is still taxable but may be deductible
Limit: $12,500 single / $25,000 married filing jointly
The limit is combined, not per spouse
Some employers may report overtime in W-2 Box 14
🚗 No Tax on Car Loan Interest
Deduction for Qualified Passenger Vehicle Loan Interest (QPVLI)
Up to $10,000 deductible
Income phaseout:
$200,000 MFJ
$100,000 all other filers
👵🏾🧓🏾 Enhanced Deduction for Seniors
Born before January 2, 1961
Must file jointly if married and have a valid SSN
$6,000 per person ($12,000 if both spouses qualify)
Income limits:
$150,000 MFJ
$75,000 others
✅ Don’t Miss These Deductions
These deductions can significantly reduce your taxable income—but many taxpayers won’t know they qualify.
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We’ll make sure you’re claiming every deduction you’re entitled to—accurately and strategically.