Deduction Caps and Phase-Outs

One table for every limit in the new deductions, US federal, tax years 2025 to 2028. The phase-outs are not the same maths: tips and overtime reduce $100 for every full $1,000 over the threshold, while car loan interest reduces $200 for every $1,000 or part of one, which is why it disappears so much faster. Every figure traces to the site's IRS rules register.

Step chart of the overtime deduction for a single filer at the $12,500 cap, falling $100 for every full $1,000 of MAGI over $150,000 and reaching zero at $275,000 — The shared overtime and tips phase-out rate, drawn at the overtime cap. Tips use the same steps against their own $25,000 cap.

Deduction	Cap	Phase-out starts (MAGI)	Phase-out rate	Filing notes
Overtime premium	$12,500 ($25,000 joint)	$150,000 ($300,000 joint)	$100 per full $1,000 over	Married must file jointly. Premium only, FLSA overtime only.
Tips	$25,000 per return	$150,000 ($300,000 joint)	$100 per full $1,000 over	Married must file jointly. Listed occupations only.
Car loan interest	$10,000 per year	$100,000 ($200,000 joint)	$200 per $1,000 or part over	Separate filers allowed at the $100,000 threshold. US final assembly, loan after 2024.
1099-K (payment apps)	Reportable over $20,000 AND over 200 transactions		Payment cards: no threshold	Income is taxable with or without the form. States may differ.
1099-NEC / 1099-MISC	$600 through 2025, $2,000 from 2026		Inflation-adjusted after 2026	Royalties $10, attorney proceeds $600 and direct sales $5,000 did not move.

A deduction lowers taxable income, not the tax bill directly: what a deduction is worth depends on your marginal rate, which is why this site never guesses a saving for you. See deduction vs tax credit for how that works, and methodology for how every figure here was sourced.