Tips, Overtime, Car Loans & More: Exploring the IRS’s New Deduction Schedule!

Certain taxpayers will claim deductions made available by the One Big Beautiful Bill Act on a new tax form. These include new deductions for seniors, those who earn tips or overtime, and taxpayers who pay eligible interest on car loans. The IRS has released a draft of the new Schedule 1-A, Additional Deductions (https://bit.ly/4nkYaZ1). It’s intended to be attached to Form 1040, 1040-SR or 1040-NR. Taxpayers are encouraged to review this draft and submit any comments about it to the IRS. Note that the IRS hasn’t yet released instructions for the draft schedule or a final list of occupations that qualify for a deduction on tips. Contact us with questions about your situation.