02/23/2026
๐ก๐ข ๐ง๐๐ซ ๐ข๐ก ๐ง๐๐ฃ๐ฆ:
>Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in occupations the IRS identified as โcustomarily and regularly receiving tipsโ on or before Dec. 31, 2024, and are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips
>โQualified tipsโ include voluntary cash or charged tips received from customers, including shared tips
>Maximum annual deduction is $25,000
>For self-employed individuals, deduction cannot exceed net income (before this deduction) from the trade or business where tips were earned
>Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
๐ก๐ข ๐ง๐๐ซ ๐ข๐ก ๐ข๐ฉ๐๐ฅ๐ง๐๐ ๐:
>Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their regular rate of pay (for example, the โhalfโ portion of โtime-and-a-halfโ)
>Overtime must be reported on Form W-2, Form 1099, another statement furnished to the individual, or directly by the individual
>Maximum annual deduction is $12,500 ($25,000 for joint filers)
>Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
๐ก๐ข ๐ง๐๐ซ ๐ข๐ก ๐๐๐ฅ ๐๐ข๐๐ก ๐๐ก๐ง๐๐ฅ๐๐ฆ๐ง:
>Effective 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle for personal use that meets other eligibility criteria. Lease payments do not qualify
>Maximum annual deduction is $10,000
>Phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers)
Interest must be paid on a loan that:
>Originated after Dec. 31, 2024
>Was used to purchase a vehicle originally used by the taxpayer
>Was secured by a lien on the vehicle
>Was for a personal-use (nonbusiness) vehicle
