The One Big Beautiful Bill created four brand-new deductions for the 2026 filing season — No Tax on Tips, No Tax on Overtime, Car Loan Interest, and the Senior Bonus. See your total new deduction and estimated federal tax savings in seconds. ✓ 2026 IRS figures
New deductions • Estimated savings
The One Big Beautiful Bill Act (OBBBA), signed July 2025, created four new deductions you can claim on your 2026 tax return — and the best part is most stack on top of the standard deduction, so you don't have to itemize.
No Tax on Tips: deduct up to $25,000 of qualified tips. No Tax on Overtime: deduct your overtime premium up to $12,500 ($25,000 married filing jointly). Both phase out above $150,000 MAGI ($300,000 joint). Car Loan Interest: deduct up to $10,000 of interest on a new, US-assembled personal vehicle, phasing out above $100,000 ($200,000 joint). Senior Bonus: an extra $6,000 per person 65+, phasing out above $75,000 ($150,000 joint).
This is an educational estimate, not tax advice — your actual benefit depends on your full return. Claim these on the new Schedule 1-A when you file for 2026.
Recent US tax legislation bundled several distinct provisions — deductions for tip income and overtime premium, an enhanced senior deduction, a vehicle loan interest deduction, and changes to the SALT cap. They interact rather than simply adding up, because each reduces taxable income and can therefore push you into a lower marginal bracket, changing what the next deduction is worth. Most also carry independent income phase-outs, so a household qualifying for one may be phased out of another. The only reliable approach is to compute tax with and without the package rather than summing the individual savings.
Total benefit = Tax without provisions − Tax with provisionsNot simply Σ (each deduction × marginal rate) — brackets shiftEach provision has its own phase-out rangePayroll tax is unaffected by any of themwhere:
Assumptions: Provisions, thresholds and expiry dates are set by statute and subject to change. Compute against current-year rules rather than assuming continuity between years.
Stack tip, overtime and vehicle interest deductions and measure the combined effect.
Result$1,803 of federal tax saved across the three provisions
Multiplying $15,024 by the 12% marginal rate would suggest $1,803 — which happens to match here because the whole deduction stays within one bracket. Had it crossed into the 10% band the simple multiplication would have overstated the benefit, which is why computing tax both ways is the safer method.