NEW FOR 2025: Special Deductions
1. Car Loan Interest Deduction
For 2025, you may be able to deduct up to $10,000 of interest paid on a vehicle loan, even if you take the standard deduction.
- Did you buy a NEW vehicle in 2025? (Must be purchased after Dec 31, 2024).
- Was it assembled in the USA? (We will need the VIN to verify final assembly location).
- If so, please provide the year-end loan statement from your lender showing interest paid in 2025 and the vehicle’s VIN.
2. No Tax on Tips (Deduction)
If you work in a traditionally tipped occupation (e.g., hospitality, beauty services), up to $25,000 of your tip income may be deductible.
- Did you receive tips in 2025?
- Ensure the information needed is on your W2. If you kept a daily tip log or have records of tips not reported on your W-2, please provide those as well.
3. No Tax on Overtime (Deduction)
Certain overtime pay (time-and-a-half) required under the Fair Labor Standards Act is now deductible (capped at $12,500 for single filers, $25,000 for joint).
- Did you work overtime in 2025?
- Check your year-end pay stub or W-2 (Box 14) for a breakdown of "Overtime Pay." If it is not clearly listed, please ask your employer for a statement detailing your overtime hours and pay rate for the year.
4. SALT Cap Increase
The limit on deducting State and Local Taxes (SALT) has increased from $10,000 to $40,000 for this year.
- Please ensure you provide all records of property taxes paid and state income taxes paid (or sales tax records if you made large purchases).