The 4 New Deductions Hitting Your 1040s This Filing Season

This session explains the "one big beautiful bill" deductions, including those for tips and car loan interest, which impact taxable income. We detail the specific rules and phase-out amounts for these "tax deductions" for tax years beginning in 2025, clarifying how "no tax on overtime" and "car loan" interest deductions work. Understanding these "irs rules" is crucial for effective "tax planning" and managing your "income tax" liability. What tax professionals will learn: Draft Schedule 1-A explained: what it is, why it was released, and how it connects to Form 1040 and Schedule 1 Overview of the four new above-the-line deductions under H.R. 1 and how each one is calculated No tax on tips deduction: eligibility rules, MAGI thresholds, and phaseouts No tax on overtime deduction: how it works and what qualifies Car loan interest deduction: who qualifies and how it interacts with AGI Enhanced senior deduction: requirements and calculation Why AGI matters and how these new deductions affect credits and other deductions downstream Line-by-line Schedule 1-A form walkthrough so you can follow the IRS draft in real time What IRS notices have revealed so far and what remains uncertain How to start preparing clients for the 2025 filing season right now This is an interactive class discussion session built for CPAs, enrolled agents, bookkeepers, and tax preparers who want to stay ahead of federal form changes and think critically about how new tax law affects their workflow and their clients. Topics covered include: IRS Schedule 1-A, One Big Beautiful Bill deductions, no tax on tips, no tax on overtime, car loan interest deduction, senior deduction 2025, Form 1040 new deductions, MAGI phaseout 2025, above-the-line deductions, tax law changes 2025. Want to go deeper? Here is where to connect: Join the Nadia CPA Inner Circle, a growing community built for tax professionals ready to level up their practice: 👉 https://taxtrainingacademy.com/commun... Explore courses, masterclasses, and CE-eligible training at Tax Training Academy: 👉 https://www.taxtrainingacademy.com Follow Nadia on Instagram for weekly tax tips: 👉 @nadia.cpa Connect with Nadia Rodriguez, CPA CTC at: www.NadiaCPA.com Instagram: / nadia.cpa Facebook: /NadiaR.CPA LinkedIn: / nadiarodriguezcpa 0:00 Welcome and Introduction 1:37 About the Speaker: Nadia Rodriguez CPA 3:11 What Is Schedule 1-A? 5:19 Overview: The Four New Deductions Under One Big Beautiful Bill 10:02 Above-the-Line vs. Below-the-Line Deductions 14:02 Why AGI Matters: Credits and Deductions Affected 17:18 Enhanced Senior Deduction 18:42 No Tax on Tips: Deep Dive 18:46 Line-by-Line Schedule 1-A Form Walkthrough 29:28 No Tax on Overtime: Deep Dive 34:35 Car Loan Interest Deduction 35:23 IRS Notices and What We Know Today 39:24 How to Prepare Your Clients for Tax Season 2025