Which 2026 Tax Deductions Do You Qualify For?
Answer a few quick questions. We will show you every new deduction you can claim this year, with a free calculator for each one. Takes about 30 seconds.
All deductions at a glance
| Deduction | Max amount | Who qualifies | Expires |
|---|---|---|---|
| Tips | $25,000 | Tipped workers on the IRS list | 2028 |
| Overtime | $12,500 / $25,000 married | Hourly workers with FLSA overtime | 2028 |
| Car loan interest | $10,000 | New US-assembled car buyers | 2028 |
| Senior (65+) | $6,000 / $12,000 married | People age 65 and older | 2028 |
| SALT | $40,400 | Itemizers in high-tax states | 2029 |
| Trump Account | $5,000/year + $1,000 free | Kids born 2025-2028 | Ongoing |
How the new deductions work
The One Big Beautiful Bill Act created four new deductions: tips, overtime, car loan interest, and the senior deduction. All four go on a new IRS form called Schedule 1-A. You can claim them on top of the standard deduction without itemizing. They reduce your taxable income but not your AGI. Read more about why that distinction matters.
The SALT deduction is separate and requires itemizing on Schedule A. The student loan plans (RAP and IBR) are not deductions but repayment programs. See the full bill summary for everything that changed.
Your situation affects which deductions stack
Many people qualify for more than one. A server over 65 who bought a new car could claim tips, the senior deduction, and car loan interest on the same return. A nurse with overtime who lives in New Jersey could claim overtime plus SALT. The deductions are independent and they stack. The only restriction is that married filing separately kills the tips and overtime deductions entirely.
Know your 2026 tax bracket
Your savings depend on your bracket. A $10,000 deduction at the 12% bracket saves $1,200. At the 22% bracket it saves $2,200. Same deduction, different result. Check your 2026 bracket before running the calculators so you know what the numbers mean.
Frequently asked questions
What new tax deductions are available in 2026?
Four new deductions: no tax on tips (up to $25,000), no tax on overtime (up to $12,500), car loan interest (up to $10,000), and the senior deduction ($6,000 per person 65+). The SALT cap also rose to $40,400. All are claimed on Schedule 1-A except SALT which goes on Schedule A.
Can I claim more than one deduction?
Yes. The deductions are independent and stack. A tipped worker over 65 who bought a qualifying car can claim all three on the same return.
Do I need to itemize to claim the new deductions?
No. The tips, overtime, car loan, and senior deductions work on top of the standard deduction. Only the SALT deduction requires itemizing.
When do the new deductions expire?
Tips, overtime, car loan interest, and the senior deduction expire after tax year 2028. The SALT cap increase expires after 2029.