If you get a W-2 from your job, you might feel like tax breaks are usually for “someone else”—business owners, investors, people who own yachts, etc. But this year? That’s changing.
The new 2025 tax law (aka the “One Big Beautiful Bill”) added some surprising deductions just for W-2 workers:
👉 No Tax on Tips (up to $25,000)
For the first time ever, tip income can be tax-free—up to $25,000 if you’re Married Filing Jointly, or $12,500 otherwise. Not everyone qualifies (your job must be on a soon-to-be-published “tipped professions” list), but if you or someone in your family works in hospitality, this could be a really nice tax break.
👉 No Tax on Overtime
If you earn extra income from overtime, that could also be deductible, again up to a maximum of $25,000. The IRS is still finalizing the rules, but the early word is that employers will need to report your overtime pay separately on your W-2. HR and payroll departments will likely provide employees with more information as to how this will work, as these new rules get implemented.
👉 Auto Loan Interest Deduction
If you buy a new car (assembled in the USA) in 2025 and make payments on it, you may be able to deduct up to $10,000 in interest—even if you don’t itemize deductions.
These changes might not make headlines, but they could seriously reduce your tax bill—if you plan ahead.
Interested in reducing your tax burden in 2025 and beyond? Our tax reduction consulting service is designed to help you take full advantage of recent changes in tax law. To schedule a meeting with an Easy Tax Service Professional, please call 928-775-7000 Ext 0 and speak with our receptionist.