01/04/2026
Filing for the 2025 tax year (starting now in January 2026) involves some new steps due to the One Big Beautiful Bill (OBBB). Because the law was passed mid-year, the IRS is using a "transition year" approach.
Here is your 2025 Filing Checklist:
1. Gather Your Special Documents
Since 2025 W-2s and 1099s may not have separate boxes for the new deductions, you will need to "prove your work":
• W-2 / 1099 Forms: Check Box 14 of your W-2. Many employers are using this "Other" box to list your "Qualified Overtime" or "Qualified Tips."
• Pay Stubs & Logs: If your employer didn't separate these on your W-2, keep your final 2025 pay stubs showing overtime hours or your daily tip logs.
• Auto VIN: If claiming the Car Loan Interest deduction, you must have the Vehicle Identification Number (VIN) of your U.S.-assembled car.
2. Use the New Form: Schedule 1-A
The IRS has introduced Schedule 1-A (Additional Deductions). This is where you will calculate the specific dollar amounts for:
• Qualified Tips: (Up to $25,000).
• Qualified Overtime: Note that you only deduct the "premium" portion (e.g., the "half" in time-and-a-half).
• Senior Bonus: The additional $6,000 for those 65+.
• Auto Loan Interest: (Up to $10,000).
3. Check Your Filing Status & Income
Several of these "Beautiful" deductions have strict eligibility rules:
• No "Married Filing Separately": Most of these new deductions (Tips, OT, Seniors) require you to file as Single, Head of Household, or Married Filing Jointly.
• SSN Requirement: You (and your spouse) must have a valid Social Security Number (not just an ITIN) to claim the Tips and OT deductions.
• Income Limits: * Tips/OT: Phase-out starts at $150,000 (Single) / $300,000 (Joint).
• Senior Bonus: Phase-out starts at $75,000 (Single) / $150,000 (Joint).