Core Points - The tax filing season has begun, introducing Schedule 1-A (Form 1040) for new deductions from the One Big Beautiful Bill Act (OBBBA) [1][3] - Schedule 1-A is designed to help taxpayers identify new tax breaks effective from 2025, applicable to both standard and itemized deductions [2][3] Summary by Category New Deductions - The OBBBA, enacted on July 4, 2025, includes four new deductions available for tax year 2025 [3] - The deductions are: 1. No tax on tips for certain occupations, with a maximum deduction of $25,000, phasing out for MAGI over $150,000 (single) or $300,000 (joint) [4] 2. No tax on overtime compensation, allowing a maximum deduction of $12,500 (single) or $25,000 (joint), phasing out for MAGI over $150,000 (single) or $300,000 (joint) [5] 3. No tax on car loan interest for new personal use vehicles, with a maximum deduction of $10,000, phasing out for MAGI over $100,000 (single) or $200,000 (joint) [6][10] 4. An additional deduction of $6,000 for seniors aged 65 or older, or $12,000 for married filers [7] Eligibility and Filing - Taxpayers must use Schedule 1-A if they plan to claim any of the four new deductions [11] - Schedule 1-A is in addition to other forms like Schedule A and Schedule 1, and it does not replace them [12] - If taxpayers do not qualify for any deductions on Schedule 1-A, they are not required to fill it out [13] Filling Out Schedule 1-A - Schedule 1-A consists of six sections, requiring basic information and calculations based on the taxpayer's situation [14] - Specific sections require additional information, such as tips received for the "no tax on tips" deduction and W-2 forms for the "no tax on overtime" deduction [15][16] - The final section aggregates the deductions to report on Form 1040 [18] FAQs - Taxpayers taking the standard deduction can still file Schedule 1-A if they qualify for the new tax breaks [19] - The IRS provides resources to determine job qualifications for the tip deduction and to verify if a vehicle qualifies for the car loan interest deduction [20][21]