Schedule 1-A: the new home for four deductions

Each of the four deductions has its own cap and its own income phase-out, so a client can qualify for one and lose another. All four need an SSN on the return and, for married clients, a joint return.

• Qualified tips: up to $25,000 a year, phasing out over $150,000 ($300,000 joint).
• Qualified overtime premium: up to $12,500 ($25,000 joint), phasing out over $150,000 ($300,000 joint).
• Car loan interest: up to $10,000 a year, phasing out over $100,000 ($200,000 joint).
• Seniors 65 and over: $6,000 per person, phasing out over $75,000 ($150,000 joint).

Add these to your organizer so the schedule is answered before the return is opened.

• Did you receive tips in your job or business? What is your occupation?
• Were you paid overtime at a higher rate? Please send your last pay stub of the year.
• Did you take out a loan after 2024 to buy a car for personal use? Please send the loan statement and the VIN.
• Were you, or your spouse, 65 or over during the year?
• Do you and your spouse both have a valid SSN?