Taxes: No Tax on Tips, Overtime, and Auto Loan Interest — New 2025 OBBBA Breaks

The One Big Beautiful Bill Act, signed July 4th, 2025, created three brand-new above-the-line deductions for tip workers, overtime earners, and auto loan borrowers. This episode breaks down exactly who qualifies for each deduction, how the phase-outs work, and why FICA taxes still apply to tips even after the income tax deduction. All three deductions expire after tax year 2028. Watch the next video in this series to see how your worker classification determines whether you owe thousands more in taxes than someone doing the same job. ▶ Watch next: W-2 vs. 1099: What the IRS Says About How You Get Paid https://www.youtube.com/watch?v=0HMG04KmBhI 📺 Full playlist: Taxes (US - 2026) https://www.youtube.com/playlist?list=PLlIAFxS29648tZvdlQoVzEf8eMsYpNdZw Chapters: 0:00 Three Brand-New Deductions From the 2025 Tax Law 2:02 No Tax on Tips: Who Qualifies and What the Catch Is 4:06 No Tax on Overtime: The W-2 Employee Bonus 5:54 Auto Loan Interest Deduction: The US-Assembled Rule 7:57 Above the Line, Phase-Outs, and the 2028 Expiration Clock 9:54 FICA, Filing, and What to Do Before Year-End 12:12 Quiz Time 14:36 Key Takeaways #Taxes #TaxPlanning #TaxStrategy --- Disclosure The avatars and voices in this video are AI-generated. All content -- research, scripts, lesson design, and the custom video engine -- is created by a CISSP, CISM, and PMP certified professional with a Master's in Project Management, a B.S. in Information Technology, and a Doctorate in Business Administration in progress. This channel exists to make learning accessible and straightforward. This channel is not affiliated with, endorsed by, or sponsored by the Internal Revenue Service (IRS), any state department of revenue, or any tax preparation company. All information is sourced from publicly available IRS and state tax authority resources and is provided for educational purposes only. Tax brackets, deduction amounts, credit eligibility, and filing rules change annually — always verify with IRS.gov or a qualified Certified Public Accountant (CPA), Enrolled Agent (EA), or tax attorney before making tax decisions. IRS: 1-800-829-1040 | IRS.gov | Volunteer Income Tax Assistance (VITA) locator: irs.treasury.gov/freetaxprep