Breakdown of the new deduction for auto-loan interest (For Personal Vehicle)
Individuals who purchase a new vehicle (for personal use, not fleet or commercial) on or after January 1, 2025 (and through December 31, 2028) may deduct up to $10,000 of interest paid on the auto loan each tax year. Vehicle must have its final assembly in the United States
No Tax on Overtime Pay
Workers can earn overtime tax-free, up to certain limits.
This benefit is designed to help working families keep more of the money they earn, especially those taking on extra hours, weekend shifts, or holiday work.
Starting in Tax Year 2025, workers can earn overtime tax-free, up to certain limits.
This benefit is designed to help working families keep more of the money they earn, especially those taking on extra hours, weekend shifts, or holiday work.
New 50% Tip Income Tax Deduction Explained
When employees report their tips, those tips are considered taxable income — they increase:
Federal income tax
Social Security & Medicare (FICA) tax
State income tax (in most states)
Now, workers can deduct 50% of their reported tips from their taxable income on their federal ta
Social Security and the New Senior Deduction: What You Need to Know
Starting tax year 2025 through 2028, individuals age 65 or older can claim an additional $6,000 deduction ($12,000 if married filing jointly) on their federal income tax.
How This Year’s Child Tax Credit Works for Parents With ITIN Numbers
The Child Tax Credit for this tax year is worth up to $2,200 per qualifying child. But many families are unaware of one of the most important rules affecting mixed-status households.
If the parents (husband, wife, or both) do NOT have a valid Social Security Number (SSN), they do NOT qualify for the $2,200 Child Tax Credit.