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“No tax on tips”
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For 2025–2028, individuals in tipped occupations can deduct (i.e. exclude) their reported tips from taxable income (up to a cap) under certain income thresholds.
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Servers, bartenders, taxi drivers, etc.
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Must still report tips; the exclusion has limits tied to income thresholds.
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“No tax on overtime (qualified portion)”
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A deduction is allowed for “qualified overtime compensation” (the extra half portion in time & a half) up to a specified maximum, for eligible taxpayers.
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People who regularly do overtime and whose incomes fall under the thresholds
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The rules define exactly what portion qualifies; employers must report the qualified overtime pay.
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Auto loan interest deduction (for U.S.-assembled vehicles)
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From 2025 to 2028, individuals can deduct up to $10,000/year of interest paid on loans for qualifying U.S.-assembled cars (for personal use).
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People buying eligible cars, especially those in lower to moderate income ranges
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Deduction phases out above certain modified AGI levels (e.g. over $100,000 single / $200,000 joint). Leases don’t qualify.
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Increased SALT (state & local tax) deduction cap (temporarily)
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The cap on how much state & local taxes you can deduct is raised from $10,000 to $40,000 (for those under certain income limits).
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Especially taxpayers in high-tax states (NY, CA, etc.) who itemize deductions
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There are income-based limits/phaseouts for using the higher SALT cap.
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“Bonus” deduction for seniors (age 65+)
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A new additional deduction (on top of the standard deduction) of up to $6,000 for taxpayers age 65+, effective 2025–2028.
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Older taxpayers, especially those relying on Social Security, pensions
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The deduction phases out at higher incomes.
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Permanent extension of “TCJA” individual rate structure
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The 2017 Tax Cuts & Jobs Act rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent (i.e. no scheduled revert).
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All individual taxpayers
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The income thresholds for brackets are still adjusted for inflation each year.
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Estate / Gift / Generation-Skipping (GST) changes
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Exemptions are raised (for 2026) to $15 million per person (indexed). The 40% top tax rate remains.
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High-net-worth individuals / estates
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Be aware of the future “sunset” or reversion rules; planning is key in transition years.
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Other inflation / adjustment tweaks
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Standard deduction increases, alternative minimum tax (AMT) thresholds rise, Earned Income Tax Credit (EITC) maximums increase, etc.
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Everyone
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These are more “normal annual adjustments,” but combined with the new law they shift effective tax burdens.
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Clean energy / green tax credits expire
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Residential clean energy / solar / battery home credits are set to expire after December 31, 2025.
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Homeowners doing solar, wind, battery installations
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If you have a planned project, try to accelerate it before the deadline.
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