01/13/2026
🤑🤑Advancements have been advancing‼🤑
Come by or email your info to [email protected]
Please wait for all documents to avoid having to Amend.. so many Changes.. do not miss the new credits and deductions!!
💥The deductions apply to income earned from January 1, 2025, through December 31, 2028.
💥FICA Taxes Still Apply💥
The deduction only applies to federal income tax. You still owe Social Security and Medicare taxes on all tip and overtime income.
💥Eligibility & Limits💥
Tips: You can deduct up to $25,000 in qualified, voluntary tips if you work in an eligible occupation as defined by the IRS.
Overtime: You can deduct up to $12,500 of the premium (the "half") portion of your overtime pay. The deduction is $25,000 for married couples filing jointly. MAKE SURE YOUR PREPARE KNOWS HOW TO FIGURE THIS TO AVOID AUDITS!!!
💥Income Phase-Outs💥
The ability to claim these deductions starts to phase out if your modified adjusted gross income (MAGI) is over $150,000 (single filers) or $300,000 (married couples filing jointly).
💥Claiming the Deduction for Tax Year 2025: You will claim the deductions on a new federal tax form called Schedule 1-A when you file your 2025 federal tax return in early 2026.
💥Employer Reporting: For tax year 2025, employers were granted penalty relief and may not separately itemize qualified tips and overtime on your W-2 form. You may need to rely on personal records or employer-provided statements to calculate the deduction amount accurately. The IRS will likely introduce specific reporting changes on the 2026 W-2 forms.
