State Accounting Service

Wanted to post a few items from the Big Beautiful bill that may affect many of you on taxes in 2025 and going forward in 2026.

Car Loan interest: The purchase must be a new car and purchased after Dec 31 2024. The limit is $10,000 and the income limitation before phase out is single ($100K) and MFJ ($200K).

Seniors 65 or older get an additional standard deduction of $6,000 for single and $12,000 for MFJ. The limitation on income is $75K for single and $150K for MFJ.

The no tax on tips is up to $25K and income limitation is $150K single and $300K for MFJ.

The no tax on overtime is $12,500 single and $25K for MFJ with the same income limitations as the tips. This deduction is just for the half time of the overtime. Your check stub may say you had $27K in overtime but only 9K in this scenario would be exempt.

For both the tip and overtime deduction you must file jointly if married to qualify.

One other note going forward for 2026 is the charity contribution. Even if you do not itemize and take the standard deduction, starting in 2026 if u make qualified charitable contributions you can add up to $1000 single and $2,000 MFJ on top of the standard deduction so remember in 2026 to get your charity receipts.

Lastly, the energy credits, doors, windows, furnace, AC unit, insulation, etc expires Dec 31, 2025 so you have a little time left to get these credits.