Guides
Plain-English explanations of the new deductions, written from IRS primary sources and linked to the matching calculator.
- No Tax on Tips: Who Qualifies and How Much You Save (2026)Which occupations qualify, the $25,000 limit, the MAGI phase-out, and why your paycheck doesn't change — with worked examples.Updated Jul 29, 2026
- No Tax on Overtime Explained: Only the Premium CountsThe most misunderstood new deduction — why only the extra half-time portion qualifies, with step-by-step calculations.Updated Jul 29, 2026
- W-2 Box 12 Code TT: What It Means for Your 2026 ReturnA new code appears on W-2s for tax year 2026. What TT reports, where the overtime number lives, and how to claim both deductions.Updated Jul 29, 2026
- Trump Accounts vs 529 Plans: A Side-by-Side ComparisonThe $1,000 federal seed, the $5,000 annual limit, employer contributions, taxes, and when a 529 still wins — compared in plain English.Updated Jul 29, 2026
- The SALT Deduction Cap in 2026: $40,400, and Who Actually Gets ItThe cap rose from $10,000, but you have to itemize, the 30% phase-down starts at $505,000, and it reverts in 2030 — with worked examples.Updated Jul 29, 2026
- The $6,000 Senior Deduction: How the 6% Phase-Out Really WorksWho qualifies at 65+, why the per-person amount is calculated before the headcount, and why the deduction ends at $250,000 for couples — not $350,000.Updated Jul 29, 2026
- Stacking the 2026 Deductions: How Tips, Overtime, Senior and SALT InteractOne MAGI drives four deductions that phase out at different rates. Why one can vanish while another is untouched — and where SALT differs from the rest.Updated Jul 29, 2026
- MAGI on Schedule 1-A: The One Number That Decides EverythingEvery deduction on the new schedule is gated by modified adjusted gross income — and MAGI is not the AGI printed on your 1040. What it is, where it comes from, and what moves it.Updated Aug 11, 2026
- Schedule 1-A, Part by Part: A Walkthrough of the New FormThe form that carries the tips, overtime and senior deductions has six parts and one output line. What each part does and where the total lands on your 1040.Updated Aug 11, 2026
- Why Your Paycheck Didn't Change When 'No Tax on Tips' StartedThese are deductions claimed on a return, not exemptions from withholding. Where the money actually shows up, and why waiting for it is not always the best plan.Updated Aug 11, 2026
- A $25,000 Deduction Is Not $25,000 BackThe single most expensive misunderstanding about the new deductions. What a deduction is actually worth, why it depends on your bracket, and how credits differ.Updated Aug 11, 2026
- Married Filing Separately in 2026: What It Costs YouThree of the four new deductions are unavailable to separate filers, and the SALT cap is halved. What you give up, and the situations where separate filing still makes sense.Updated Aug 11, 2026
- The Social Security Number Rule on the New DeductionsTips, overtime and the senior deduction all require a valid SSN on the return. What that means for ITIN filers, mixed-status couples, and returns filed without one.Updated Aug 11, 2026
- The $1,000 Rounding Rule: Why One Extra Dollar Can Cost $100Tips and overtime phase out in $100 steps for each full $1,000 of excess income, rounded down. The steps create small cliffs — here is exactly where they fall.Updated Aug 11, 2026
- SALT Is the Only One That Needs Schedule AThree of the four deductions work whether you itemize or not. SALT does not. How to decide whether itemizing is worth it once the cap rose to $40,400.Updated Aug 11, 2026
- Your State May Not Follow the Federal DeductionsA federal deduction does not automatically reduce your state taxable income. How conformity works, why it varies, and what to check before you assume the saving is doubled.Updated Aug 11, 2026
- What Records You Need for the Tips and Overtime DeductionsYour employer reports some of it, but not all of it. What to keep through the year, what to reconcile against your W-2, and what to do when the numbers disagree.Updated Aug 11, 2026
- Adjust Your W-4, or Wait for the Refund?A deduction you will claim next spring can be reflected in this year's withholding instead. The trade-off, the risk of getting it wrong, and who should leave it alone.Updated Aug 11, 2026
- You Filed and Missed a Deduction. Now What?Form 1040-X exists for exactly this. When amending is worth it, how long you have, and the arithmetic of deciding whether a small deduction is worth the paperwork.Updated Aug 11, 2026
- These Deductions Expire. Here Is the CalendarTips, overtime and the senior deduction are written to end after 2028, and the SALT cap drops back to $10,000 in 2030. What that means for decisions you make now.Updated Aug 11, 2026
- The Federal Child Savings Account: Dates, Limits and the $1,000 SeedWho gets the seed deposit, when accounts could first be funded, how the $5,000 annual cap interacts with employer contributions, and what happens at 18.Updated Aug 11, 2026