Lecker, Martin. “Don’t sleep on these new tax benefits” 21-22 March, 2026.
Interview with Pat Consolati
Excerpt from The Berkshire Eagle
Pat Consolati, tax expert and owner of Lee’s Consolati Tax Prep, pointed out some tax changes that may be found on his website under “Resources.” These tax laws for 2025 have been summarized.
TIPS FOR UNDERSTANDING WHAT IS AND WHAT’S NOT COVERED IN THE TAX CREDIT
Excerpt
1. No tax on car loan interest
• Individuals may deduct up to $10,000 per year from 2025-28 for qualified, personal-use new vehicles (gross vehicle rating, less than 14,000 pounds) with final assembly in the United States.
• Deduction phases out for taxpayers with modified adjusted gross income of more than $100,000 ($200,000 for joint filers)
2. Deduction for seniors • Effective for 2025-28, individuals age 65 and older may claim an additional deduction of $6,000 (or $12,000 total for eligible taxpayers)
• Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
3. No tax on tips
• Effective for 2025-28, employees and self-employed· individuals may deduct up to $25,000 for qualified tips received in occupations listed bythe IRS (i.e., food service, delivery service).
• Deduction phases out tax payers with modified adjusted gross income over $150,000) ($300,000) for joint filers).
4. No tax on overtime
• Effective for 2025-28, individuals who receive qualified overtime compensation may deduct up to $12,500 ($25,000 for joint filers) with other required criteria, including furnished statements.
• This deduction phases out taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers) and is available for both itemizing and non-itemizing taxpayers.
TIPS FOR UNDERSTANDING WHAT IS AND WHAT’S NOT COVERED IN THE TAX CREDIT
Excerpt
1. No tax on car loan interest
• Individuals may deduct up to $10,000 per year from 2025-28 for qualified, personal-use new vehicles (gross vehicle rating, less than 14,000 pounds) with final assembly in the United States.
• Deduction phases out for taxpayers with modified adjusted gross income of more than $100,000 ($200,000 for joint filers)
2. Deduction for seniors
• Effective for 2025-28, individuals age 65 and older may claim an additional deduction of $6,000 (or $12,000 total for eligible taxpayers)• Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
3. No tax on tips • Effective for 2025-28, employees and self-employed· individuals may deduct up to $25,000 for qualified tips received in occupations listed bythe IRS (i.e., food service, delivery service). • Deduction phases out tax payers with modified adjusted gross income over $150,000) ($300,000) for joint filers).4. No tax on overtime
• Effective for 2025-28, individuals who receive qualified overtime compensation may deduct up to $12,500 ($25,000 for joint filers) with other required criteria, including furnished statements. • This deduction phases out taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers) and is available for both itemizing and non-itemizing taxpayers.