All-in-One Tax Break Savings Calculator (2025–2028 Deductions)

Last reviewed November 14, 2026 · Figures checked against official sources · How we verify

Short answer: Enter your overtime premium, tips, car loan interest and number of seniors to see all four Schedule 1-A deductions and an estimate of the federal income tax they save. Caps: $12,500 overtime ($25,000 joint), $25,000 tips, $10,000 car loan interest, $6,000 per person age 65+.

All four tax breaks in one estimate

How the four deductions compare

Source: IRS Fact Sheet FS-2025-03 and 2025 Schedule 1-A. All four apply to tax years 2025–2028.
Deduction	Annual cap	Phase-out starts (single / joint MAGI)	How it phases out
Overtime	$12,500 ($25,000 joint)	$150,000 / $300,000	−$100 per $1,000 (rounded down)
Tips	$25,000	$150,000 / $300,000	−$100 per $1,000 (rounded down)
Car loan interest	$10,000	$100,000 / $200,000	−$200 per $1,000 (rounded up)
Senior (65+)	$6,000 per person	$75,000 / $150,000	−6% of the excess, per person

Worked example: a married couple using three of the four

A married couple files jointly for 2026 with MAGI of $98,000. One spouse is 66 and works overtime; the other is a bartender. They paid $2,700 of interest on a new U.S.-assembled car.

Overtime: $5,200 qualified premium → $5,200
Tips: $9,000 qualified tips → $9,000
Car loan interest: $2,700 → $2,700
Senior deduction: one spouse age 65+, MAGI under $150,000 → $6,000
Total new deductions: $22,900. Baseline taxable income is $64,150; after the deductions it is $41,250. Estimated federal tax savings: $2,748 at a 12% marginal rate.

What this estimate leaves out

Federal credits such as the child tax credit and EITC, which are applied after tax is computed.
Itemized deductions (we use the standard deduction), the QBI deduction and other adjustments.
Taxable Social Security benefits and the net investment income tax.
State and local income taxes, and payroll taxes (which these deductions do not reduce).

Planning tip

Because every phase-out depends on MAGI, a pre-tax contribution to a 401(k) or HSA can reduce your AGI and therefore raise several of these deductions at once. Ask a tax professional how this works for you.

Frequently asked questions

Can I claim more than one of these deductions in the same year?

Yes. They are separate parts of Schedule 1-A (Part II tips, Part III overtime, Part IV car loan interest, Part V seniors), and Part VI adds them together. Each has its own cap and its own phase-out.

Do the phase-outs stack?

They don't stack on each other, but each one uses the same MAGI figure from Part I of Schedule 1-A, so a higher MAGI shrinks several deductions at once, at different speeds and starting points.

Which deduction phases out first?

The senior deduction begins to phase out first, at $75,000 MAGI ($150,000 joint), followed by the car loan interest deduction at $100,000 ($200,000 joint), then overtime and tips at $150,000 ($300,000 joint).

Do these reduce my AGI?

No. They are deductions taken on Form 1040 line 13b after AGI, which means your AGI (and the phase-out MAGI) are unchanged by them.

Do state taxes follow the federal deductions?

Not automatically. Each state decides whether to conform to the federal deductions, so check your state tax agency. This site's estimates are federal only.

How accurate is the savings estimate?

It is a planning estimate. It assumes you take the standard deduction and applies the official federal tax brackets for the year you pick. Credits (like the child tax credit), the alternative minimum tax, taxable Social Security, itemized deductions and other income items are not modeled.

Sources and citations

Every dollar figure on this page was checked against the official pages below on November 14, 2026. If an agency updates its guidance, the agency page controls.