Schedule 1-A · Tax year 2026

New Deductions Estimator: All Four 2026 Deductions on One Screen

Tax year 2026 has four new deductions: tips up to $25,000, the overtime premium up to $12,500 ($25,000 on a joint return), car loan interest up to $10,000, and $6,000 for each filer aged 65 or older. Enter the figures that apply to you, leaving the rest blank, and this estimator returns four estimated amounts and a total. It estimates amounts only; it does not prepare any part of a return.

Last reviewed: November 4, 2026.

Checked against IRS sources · Reviewed November 4, 2026

The combined estimator

Your return Filing status Modified adjusted gross income estimate (dollars)

For most filers this is the same as adjusted gross income. Each deduction checks its own phaseout against this one figure.

Tips Cash tips you received and reported in 2026 (dollars)

Voluntary tips only. Service charges are not tips and do not count.

Amount in Box 12 of your W-2 with code TP (optional, dollars)

Overtime premium Regular hourly rate (dollars) Overtime hours the Fair Labor Standards Act required in 2026

Only the premium counts: the extra half of the rate, for each required overtime hour. Overtime paid only under state law, a contract, or employer policy does not count.

Amount in Box 12 of your W-2 with code TT (optional, dollars)

Car loan interest Interest you paid in 2026 on a qualifying new vehicle loan (dollars)

The vehicle must be new with final assembly in the United States, and the loan must have originated after December 31, 2024 and be secured by the vehicle.

Seniors, 65 or older Filers aged 65 or older on this return

$6,000 for each filer aged 65 or older, before the phaseout.

Estimate only. This tool gives a general estimate based on the figures you entered and the published IRS rules cited on this page. It is not tax advice, it is not a tax return, and it cannot be relied on to avoid any tax penalty. Tax law and IRS guidance change. Confirm your figures against the current IRS instructions for the form you file, or ask a qualified tax professional.

Nothing you enter is sent anywhere. The calculation runs in your browser.

caps first, then the phaseouts

How to read this estimate

Four estimates and a total. That is all this tool produces. It does not fill in any form, and no figure here is an instruction to enter that amount anywhere.
Limits apply per deduction. Tips are limited to $25,000 per return, the overtime premium to $12,500 or $25,000 on a joint return, and car loan interest to $10,000. Where the amount your employer reported with code TP or code TT is lower, the estimate uses the reported amount, following IRS Fact Sheet FS-2026-13.
Phaseouts differ, and all four are worked out in full. Each formula is stated in the law itself. Tips and the overtime premium fall by $100 for each $1,000 of modified AGI over their start, counting whole $1,000 steps only. Car loan interest falls by $200 for each $1,000, or part of $1,000, over its start. The senior deduction falls by 6 percent of the excess, applied to each $6,000 amount separately. In every case the limit applies before the phaseout.
Each deduction has its own page. The tips calculator, the overtime calculator, the car loan interest calculator, and the senior calculator each carry the full rules for one deduction, and the Schedule 1-A page sets out all four together.

Sources

Public Law 119-21, enacted July 4, 2025. Created the four deductions, their limits, and their phaseouts, each formula stated in the law: sections 224(b)(2) and 225(b)(2) for tips and the overtime premium, section 163(h)(4)(C)(ii) for car loan interest, and section 151(d)(5)(C) for seniors.
Treasury Decision 10044, April 13, 2026. Final regulations for the tips deduction, carrying the 71 Treasury Tipped Occupation Codes and the phaseout formula at 26 CFR 1.224-1(b)(2).
IRS, Fact Sheet FS-2026-13, August 6, 2026. The 2026 reporting rules for the tips and overtime deductions. Source level: guidance, not binding legal authority.
IRS, Draft Tax Forms listing. Draft Schedule 1-A posted September 4, 2026. Draft document, not for filing.

Last reviewed: November 4, 2026. This page will be rechecked the day the IRS publishes the final Schedule 1-A and its instructions.