Your Estimated Tax Savings
About the OBBB Act (One Big Beautiful Bill)
The One Big Beautiful Bill Act (Public Law 119-21) was signed into law on July 4, 2025, and provides significant tax relief for American workers and families from 2025 through 2028.
Four Major Tax Deductions
🎯 No Tax on Tips
Max Deduction: $25,000/year
Phase-out: Starts at $150,000 income ($300,000 married)
Covers qualified tips from IRS-listed occupations including servers, bartenders, delivery drivers, and more.
⏰ No Tax on Overtime
Max Deduction: $12,500 ($25,000 married)
Phase-out: Starts at $150,000 income ($300,000 married)
Deduct the premium portion of overtime pay (e.g., the "half" in time-and-a-half).
🚗 No Tax on Car Loan Interest
Max Deduction: $10,000/year
Phase-out: Starts at $100,000 income ($200,000 married)
For new vehicles with final assembly in the USA, purchased after 12/31/2024.
👴 Senior Deduction
Max Deduction: $6,000 per person ($12,000 married)
Phase-out: Starts at $75,000 income ($150,000 married)
Additional deduction for taxpayers age 65 or older.
Who Can Benefit?
- Restaurant workers, bartenders, delivery drivers: Save on tip income
- Manufacturing workers, nurses, hourly employees: Save on overtime pay
- New car buyers: Deduct interest on qualifying vehicle loans
- Seniors 65+: Additional $6,000+ deduction
- Families: Combined benefits can save thousands annually
Important Eligibility Notes
- All deductions are available for both itemizing and non-itemizing taxpayers
- Must include Social Security Number on tax return
- Married taxpayers must file jointly to claim these deductions
- Phase-outs reduce deductions for higher-income taxpayers
- Some occupations and business types have special restrictions