Nichols Accounting Service LLC

If you are coming to my office in the near future, please be aware of the construction on Prairie Valley Road. If you are not familiar with the area, feel free to contact me and I’ll be happy to give you the detour route. ~Milissa

This is a great resource that explains the car loan interest deduction. The financed vehicle must be NEW and purchased AFTER 12/31/24. Used vehicles do not qualify.

What to know about the new “No Tax on Overtime” deduction:

➡️ Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

➡️ Maximum annual deduction is $12,500 ($25,000 for joint filers).

➡️ Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

➡️ It is not an itemized deduction. You can take the deduction whether you itemize or take the standard deduction.

What to know about the new Deduction for Seniors:

➡️ Individuals who are age 65 and older may claim an additional deduction of $6,000.

➡️ This new deduction is in addition to the current additional standard deduction for seniors under existing law.

➡️ The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).

➡️ Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

➡️ To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.