The One Big Beautiful Bill Act (OBBBA) brings several new benefits for taxpayers that not many are talking about yet. If you receive tips, overtime pay, or financed a new American-made vehicle—read closely. Here are three fresh deductions you can start using in 2025 and beyond:

1. No Federal Tax on Tips or Overtime Tips

Beginning in 2025, the first $25,000 in combined tips and overtime pay is federally tax-free. If you work in hospitality, delivery, or any service role with overtime—you may see a serious drop in taxable income. Just remember: report your full earnings on your W-2, then apply the adjustment.

2. Up to $10K Deduction for American Car Loan Interest

Financed a new or qualifying used vehicle assembled in the USA? You may qualify for up to $10,000 in deductible auto loan interest per year, through 2028. It’s a major win for small business owners and commuters. Bonus: you can deduct this on your personal or business return, depending on usage.

3. Use With Other Incentives

These aren’t mutually exclusive. You can combine them—along with electric vehicle credits, Section 179 equipment write-offs, or standard deductions—as long as your documentation is clean and you follow eligibility rules.

What You Should Do

• Keep track: Don’t forget your pay stubs and tip logs—this makes claiming the $25K adjustment safe.

• Verify your vehicle: Make sure it's built in the USA and used primarily for work or travel required by your business.

• Consult your tax advisor: Rules are new and evolving. A quick review could save more than you think.

Final Takeaway

These deductions offer real opportunities to reduce your 2025 tax burden—legitimately and transparently. If any of this applies to you or your team, start gathering your documentation now. And if you’d like help navigating the details, I’m just a message away!