The One Big Beautiful Bill Act (2025) created four brand-new federal deductions and quadrupled a fifth. The four new ones all live on a new form — Schedule 1-A — none of them needs you to itemize, and every one of them runs only for tax years 2025 to 2028. Each calculator below checks whether you qualify first, then does the arithmetic line by line.
| Deduction | Maximum | Phase-out starts (MAGI) | Needs itemizing? | Claimed on | Years |
|---|---|---|---|---|---|
| Overtime premium | $12,500 / $25,000 joint | $150,000 / $300,000 | No | Schedule 1-A, Part III | 2025–2028 |
| Tips | $25,000 per return | $150,000 / $300,000 | No | Schedule 1-A, Part II | 2025–2028 |
| Seniors 65+ | $6,000 per person | $75,000 / $150,000 | No | Schedule 1-A, Part V | 2025–2028 |
| Car loan interest | $10,000 | $100,000 / $200,000 | No | Schedule 1-A, Part IV | 2025–2028 |
| SALT | $40,000 (2025) / $40,400 (2026) | $500,000 / $505,000 (2026) | Yes | Schedule A | Higher cap 2025–2029 |
Thresholds shown single / married filing jointly. Married filing separately: the four Schedule 1-A deductions are not available at all; SALT halves.
The four Schedule 1-A deductions are independent — one return can claim all four in the same year, and Schedule 1-A simply adds them on the way to Form 1040, line 13b. A joint return where one spouse earns $8,000 of overtime premium, the other reports $12,000 of tips, and both are over 65, at a MAGI of $140,000 (under every phase-out threshold), deducts $8,000 + $12,000 + $12,000 = $32,000 — before the standard deduction is even applied. SALT is the separate, itemized piece and does not interact with the other four.
The four new deductions exist for tax years 2025–2028 only; the raised SALT cap runs 2025–2029 and reverts to $10,000 in 2030. Nothing here is permanent law.
Each calculator asks for your modified AGI — for almost everyone, simply the AGI on Form 1040 line 11, with a few foreign-income exclusions added back on Schedule 1-A Part I.
For the four Schedule 1-A deductions, filing separately forfeits the deduction entirely. SALT is the exception: it survives MFS, at half the numbers.
Every figure on these pages traces to the form or an IRS publication, and each calculator shows its working line by line. They are planning estimates, not tax advice.
Run the calculator for each one that sounds close — each starts with the eligibility gates, so a wrong guess costs you ten seconds. The most commonly missed gates: overtime that is not FLSA overtime, tips in a job that is not on the IRS list, and a car assembled outside the US.
Yes — the four Schedule 1-A deductions stack on one return, and SALT stacks with itemizing independently. The worked example above shows a $32,000 combined claim.
These are federal deductions. Some states conform to parts of the federal code and some do not; your state return follows its own rules, which these calculators do not model.
That is how the One Big Beautiful Bill Act was written — the four new deductions are temporary provisions for tax years 2025–2028 (the SALT cap increase runs to 2029). Congress could extend them; as enacted, they expire.
Sources & verification. Schedule 1-A (Form 1040) 2025 (irs.gov, form f1040s1a) — the form all four new deductions are claimed on. IRS newsroom page “One Big Beautiful Bill provisions: working families tax cuts for individuals and workers”; IRS FS-2026-01 (overtime); IRS Tax Tip 2026-06 (tips and overtime); IRS Publication 530 (2025) and the 2026 Form 1040-ES correction (SALT).
Figures checked 4 November 2026 against the IRS sources above. This calculator is an estimator for planning, not tax advice.
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The One Big Beautiful Bill Act created four new federal deductions for tax years 2025–2028 — overtime premium, tips, an extra $6,000 per senior, and car loan interest — and raised the SALT cap to $40,000 for 2025–2029. The four new ones are claimed on Schedule 1-A and do not require itemizing; SALT stays on Schedule A. This hub compares all five and links to a calculator for each.
A joint return with $8,000 of overtime premium, $12,000 of tips and both spouses over 65, at a MAGI of $140,000, deducts $8,000 + $12,000 + $12,000 = $32,000 across the four Schedule 1-A deductions — before the standard deduction is even applied.
Each calculator reproduces the arithmetic of the official form line by line: Schedule 1-A Parts II–V for the four new deductions, and the Publication 530 cap worksheet for SALT. Caps, thresholds and phase-out steps are the enacted figures for 2025 and 2026.
Yes. The four Schedule 1-A deductions are independent and add together on the same return; SALT is separate and depends on itemizing. The worked example on the page shows a $32,000 combined claim.
Only SALT. The four Schedule 1-A deductions are available on top of the standard deduction.
The four new ones run for tax years 2025–2028; the higher SALT cap runs 2025–2029 and reverts to $10,000 in 2030, as enacted.
Modified adjusted gross income as Schedule 1-A Part I defines it: your AGI (Form 1040, line 11) plus a few foreign-income exclusions. For almost everyone it is simply AGI.
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