IRS Issues News Release on New Schedule for Claiming Tax Deductions

The IRS has issued a news release announcing that a new schedule, which taxpayers can use to realize tax benefits of the One Big Beautiful Bill, including no tax on tips, overtime, car loans, and for seniors, has been published for tax year 2025. Schedule 1-A and its related instructions detail how taxpayers can claim deductions for qualified tips (up to $25,000), overtime compensation (up to $12,500 for individuals or $25,000 for joint filers), car loan interest, and an enhanced deduction for seniors (up to $6,000 per person or $12,000 for eligible married couples filing jointly). Each deduction includes specific ...