Tax Strategy
All posts tagged tax strategy.
Filing a Final Tax Return for a Deceased Worker: Claiming OBBBA Tips and Overtime
Surviving spouses and estate executors must file a final income tax return for deceased workers. Learn how to claim OBBBA tip and overtime deductions posthumously.
HSAs, FSAs, and 401(k) Contributions: How Pretax Payroll Deductions Interact With OBBBA
Pretax payroll deductions reduce your gross wages. Learn how Health Savings Accounts, 401(k)s, and cafeteria plans coordinate with OBBBA deductions.
Two Jobs for the Same Employer: Blended Overtime Rates and OBBBA Deductions
Employees working multiple hourly roles for one employer must be paid using blended overtime rates. Learn how to calculate deductible premiums under OBBBA.
Child Support and Alimony: How OBBBA Deductions Affect State Income Worksheets
State family courts use gross income worksheets to calculate child support and spousal maintenance. Discover how OBBBA tax deductions impact family court proceedings.
J-1 and H-2B Seasonal Hospitality Workers: Are Tips and Overtime Tax-Free on Form 1040-NR?
International students on J-1 visas and seasonal staff on H-2B visas work heavy resort hours. Discover how Form 1040-NR treats OBBBA tip and overtime deductions.
Cross-Border Commuters: Allocating OBBBA Deductions on Nonresident State Returns
Cross-border workers navigate dual state tax filings. Discover how conforming and non-conforming states treat OBBBA deductions for commuter employees.
College Students and Dependents: Can You Claim No Tax on Tips and Overtime?
Dependents and college students filing their own tax returns can claim OBBBA tips and overtime deductions. Learn how dependent standard deductions and kiddie tax apply.
Part-Time and Dual-Rate Workers: Stacking the Standard Deduction with OBBBA
Part-time workers and employees working dual-rate roles can stack the standard deduction with OBBBA breaks to eliminate federal tax liabilities.
FLSA Overtime Lawsuits and Back-Pay Settlements: Is Back Pay Deductible Under OBBBA?
Workers receiving overtime back pay from FLSA wage settlements can deduct qualified overtime premiums. Learn how back wages and liquidated damages are taxed.
Working While on Social Security: How Tips, Overtime, and the OBBBA Affect Your Benefits
Seniors working while collecting Social Security can deduct tips and overtime under OBBBA. Learn how earnings test limits and benefit taxation operate.
W-2 Box 12 Codes TP and TT: What They Mean for Tips and Overtime
Form W-2 adds Box 12 codes TP for reported cash tips and TT for qualified overtime. The codes help calculate deductions; they do not make a deduction automatic.
Can You Claim Both No Tax on Tips and No Tax on Overtime?
Eligible workers who earn both qualified tips and qualified overtime can claim both deductions on Schedule 1-A. Each deduction has its own definition, cap, and phaseout calculation.
Can You Claim the Standard Deduction AND No Tax on Tips or Overtime?
Yes — the OBBBA's tips and overtime deductions are claimed on the new Schedule 1-A and stack on top of whichever deduction method you already use, standard or itemized. Here's exactly how the math works, per the IRS's own instructions.
Does the No Tax on Tips or Overtime Deduction Lower Your MAGI? What That Means for ACA Subsidies and Roth IRAs
The OBBBA tips and overtime deductions lower your taxable income, but not your AGI or MAGI. That means they can't help you qualify for a bigger ACA marketplace subsidy or get you under the Roth IRA income limit. Here's the exact mechanism.
Will Adjusting Your W-4 for OBBBA Cause an Underpayment Penalty?
Lowering your W-4 withholding to reflect the OBBBA tips and overtime deduction is safe as long as you still meet an IRS underpayment safe harbor. Here's exactly how those safe harbors work, and how to check yours before you adjust.
Is Car Loan Interest Tax Deductible in 2026? The OBBBA Auto Loan Interest Deduction Explained
The OBBBA lets you deduct up to $10,000 a year in interest on a new car loan — but only for U.S.-assembled personal vehicles financed after 2024, and it phases out above $100,000 of income. Here’s exactly who qualifies.
OBBBA SALT Cap Increase: What the New $40,000 Deduction Limit Means for You
The OBBBA raised the SALT deduction cap from $10,000 to $40,000 for itemizers — but it phases back down to $10,000 once your income passes $500,000, and only benefits taxpayers who itemize. Here’s how the new limit actually works.
OBBBA Senior Deduction: How the New $6,000 Tax Break for Age 65+ Works
The OBBBA adds a new $6,000 federal deduction for taxpayers 65 and older ($12,000 per couple) — separate from the existing extra standard deduction for seniors. Here's who qualifies, how the phase-out works, and how to claim it.
Does the No Tax on Tips or Overtime Deduction Affect the AMT?
Neither the tips nor overtime deduction appears on the IRS Form 6251 addback list, which means both currently reduce your Alternative Minimum Taxable Income the same way they reduce regular taxable income.
OBBBA W-2 Reporting for Employers: What Changes for Tips & Overtime Boxes
OBBBA adds new Form W-2 reporting duties for employers with tipped or overtime-eligible workers — new Box 12 codes arrive for 2026, but 2025 comes with IRS penalty relief. Here's what payroll needs to track now.
Does the No Tax on Tips Deduction Reduce Your EITC or Child Tax Credit?
The tips deduction lowers your AGI, but not the W-2 earned income the EITC and Child Tax Credit actually rely on — here's how that plays out on your return.
Can You Claim the No Tax on Tips or Overtime Deduction if You're Married Filing Separately?
Married filing separately? OBBBA's tips and overtime deductions require a joint return by statute — here's what that means for your eligibility.
Started or Left a Tipped/Overtime Job Mid-Year? How the OBBBA Deduction Works
If you worked a tipped or overtime job for only part of the year, the $25,000 tips cap, the $12,500/$25,000 overtime caps, and the MAGI phase-out are still full-year figures — none of them get prorated by how many months you worked.
When Does No Tax on Tips End? The 2025-2028 OBBBA Sunset Explained
No tax on tips and overtime is not permanent. Both OBBBA deductions run for tax years 2025 through 2028 and are scheduled to expire after that unless Congress extends them. Here is the timeline.
How to Claim No Tax on Tips and Overtime on Your 2025 Tax Return (Schedule 1-A)
The OBBBA tips and overtime deductions are claimed at tax time on the new IRS Schedule 1-A — not automatically in your paycheck. Here is how the form works and the filing rules that trip people up.
OBBBA Income Limits: How the Tips and Overtime Deductions Phase Out Above $150K
The OBBBA tips and overtime deductions shrink $100 for every $1,000 of MAGI over $150,000 ($300,000 joint). See exactly where each deduction hits zero.
Adjust Your W-4 After OBBBA: Stop Overpaying Tax on Tips and Overtime
Your employer may be withholding too much federal tax if you earn tips or overtime. Updating your W-4 to reflect your OBBBA deductions puts the savings in every paycheck — not just at tax time.