Schedule 1A OBBBA Deductions Calculator 2026
Calculate all four OBBBA above-the-line deductions: qualified tips, overtime premium, car loan interest, and senior bonus. See combined tax savings instantly.
$
Income before these deductions Enter 65+ to qualify for senior deduction
Tip Deduction
$
Cap: $25,000 | Phaseout: $160K/$320K $0
Tip Deduction
Overtime Deduction
$
Time-and-a-half premium only (50% above regular rate) | Phaseout: $150K/$300K $0
OT Deduction
Car Loan Interest Deduction
$
US-assembled vehicles only | Cap: $10,000 | Phaseout: $100K/$200K $0
Car Interest Deduction
Senior Bonus Deduction (Age 65+)
Enter age 65+ to qualify
$4,000 single / $6,000 MFJ | 6% phaseout above $75K/$150K $0
Senior Deduction
$0
Total Schedule 1A Deduction
$0
Est. Tax Savings
0%
Marginal Rate
$0
Adjusted AGI After Deductions
Schedule 1A Deduction Breakdown
| Deduction | Gross Amount | Phaseout Applied | Allowable Deduction |
|---|
How to Use the Schedule 1A Calculator
Enter your MAGI (approximately your gross income before these new deductions), your age, and the amounts for each qualifying category. The calculator applies the appropriate cap and phaseout for each deduction, then shows your combined above-the-line deduction and estimated federal tax savings.
The Four OBBBA Deductions
Tip Deduction = min(qualified_tips, $25,000) Γ phaseout_factor(MAGI, $160K/$320K)
OT Deduction = overtime_premium Γ phaseout_factor(MAGI, $150K/$300K)
Car Deduction = min(car_interest, $10,000) Γ phaseout_factor(MAGI, $100K/$200K)
Senior Deduction = ($4,000 or $6,000) - max(0, (MAGI - $75K/$150K) Γ 6%)
Total = sum of all four deductions
Tax Savings = Total Γ marginal_federal_rate
Example
Single filer, age 70, MAGI $85,000, $15,000 tips, $3,000 OT premium, $6,000 car interest:
Tip deduction: $15,000 (under cap, under phaseout threshold)
OT deduction: $3,000 (under phaseout threshold)
Car deduction: $6,000 (under $10K cap, under phaseout threshold)
Senior deduction: $4,000 - ($10,000 Γ 6%) = $4,000 - $600 = $3,400
Total Schedule 1A: $27,400 | At 22% marginal rate: Tax savings $6,028
Tip deduction: $15,000 (under cap, under phaseout threshold)
OT deduction: $3,000 (under phaseout threshold)
Car deduction: $6,000 (under $10K cap, under phaseout threshold)
Senior deduction: $4,000 - ($10,000 Γ 6%) = $4,000 - $600 = $3,400
Total Schedule 1A: $27,400 | At 22% marginal rate: Tax savings $6,028
Extended
Income Sensitivity Table
See how your combined OBBBA deduction and tax savings change at different income levels
See how your total OBBBA deduction and tax savings change at different income levels. Uses your current deduction inputs.
| MAGI | Tips Ded. | OT Ded. | Car Ded. | Senior Ded. | Total Ded. | Tax Savings |
|---|
Frequently Asked Questions
What is the Schedule 1A and the OBBBA?
Schedule 1A is the proposed new above-the-line deduction schedule created under the One Big Beautiful Bill Act (OBBBA). It consolidates four new deductions: qualified tips, overtime premium pay, car loan interest on US-assembled vehicles, and a senior bonus deduction. All four reduce your AGI before the standard deduction is applied, making them available even if you do not itemize.
What counts as qualified tips for the tip deduction?
Qualified tips are cash tips received by employees in occupations that customarily receive tips β such as food service, hospitality, and personal care. The deduction is capped at $25,000 per year. A MAGI phaseout reduces the deduction for single filers above $160,000 and MFJ filers above $320,000. Tips reported on your W-2 in Box 7 qualify.
How is the overtime deduction calculated?
Only the overtime premium portion qualifies β that is the extra 50% paid above the regular rate for hours worked over 40 per week. If your regular rate is $20/hr and you earn $30/hr for overtime, the deductible portion is $10/hr (the premium). The deduction phases out for single filers with MAGI above $150,000 (MFJ: $300,000).
Which vehicles qualify for the car loan interest deduction?
The vehicle must be final-assembled in the United States as certified under the American Automobile Labeling Act. The deduction covers interest paid on the car loan up to $10,000 per year. The phaseout begins at MAGI of $100,000 for single filers and $200,000 for married filing jointly. Electric and gas vehicles both qualify if US-assembled.
Who qualifies for the senior deduction and how does the phaseout work?
Taxpayers age 65 or older receive an additional $4,000 deduction if single, or $6,000 if married filing jointly (both spouses must be 65+, otherwise $4,000 per qualifying senior). The phaseout is unusual: it reduces the deduction by 6% of MAGI above $75,000 single / $150,000 MFJ. At $75,000 + ($4,000 / 0.06) = ~$141,667 for single, the deduction reaches zero.