No Tax on Tips( Temporary Deduction for Tips) |
Tips fully taxable |
Deduction for up to $ 25,000 in qualified tips per year( phased out at high incomes) for 2025 – 2028 |
Many tip earners will pay less tax on tips |
No Tax on Overtime( Temporary Deduction for Overtime Pay) |
Overtime pay fully taxable |
Deduction for up to $ 12,500($ 25,000 joint) in qualified overtime pay per year( phased out at high incomes) for 2025 – 2028 |
Overtime earners may pay less tax |
Temporary Deduction for Car Loan Interest |
Personal car loan interest was not deductible. |
Deduction of up to $ 10,000 / year for interest on loans for new U. S.- assembled passenger vehicles( 2025-2028), phased out at higher incomes. |
Temporary deduction for car loan interest on qualifying vehicles |
Permanent Increase in AMT Exemption |
Increased exemption / phaseout thresholds temporary |
Made permanent, with modifications to inflation adjustments and phaseout rates |
Fewer individuals subject to AMT |
Permanent and Expanded Above-the-Line Charitable Deduction |
$ 300($ 600 joint), temporary / expired 2021. |
Increased to $ 1,000($ 2,000 joint), made permanent |
More non-itemizers can deduct charitable contributions |