OBBB Tax Credits and Deductions Quick Reference – Support

Earned Income Credit

Both the taxpayer and spouse must have a valid SSN to claim the credit
Maximum AGI to claim can be found here (select 2025 beneath the EITC Tables section)
Taxpayers filing Married Filing Separately (MFS) cannot claim the credit
When claiming the credit with a qualifying child, the child must have lived in the household for more than half of the year. The qualifying child does not have to be a dependent on the return

New for 2025, the taxpayer must have valid SSN on all single, HOH & QSS returns. On MFJ return, either the taxpayer OR the spouse must have a valid SSN in order to claim the credit
The amount of the credit is limited to the amount of tax liability on Form 1040, line 16
The qualifying child must have a valid SSN
The qualifying child must be a dependent on the return
The Child Tax Credit is limited to the amount of income tax liability on Form 1040, line 16 and will not be applied against other taxes, such as the Self-employment tax shown on Form 1040, line 23

The taxpayer must have valid SSN on all single, HOH & QSS. On a MFJ return the individual receiving the tips must have a valid SSN.
Taxpayers filing Married Filing Separately (MFS) cannot claim the credit
The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
The deduction is limited to $25,000 per return (not per taxpayer)
For a W-2 employee, the tips are found in Box 7 and in Box 8.For a self employed taxpayer the total amount of tips received are included in Gross income. The tips received by the self employed can be deducted on Schedule 1-A, but the amount cannot exceed the Net Profits reported on Schedule C

The taxpayer must have valid SSN on all single, HOH & QSS. On a MFJ return the individual receiving the overtime must have a valid SSN.
Taxpayers filing Married Filing Separately (MFS) cannot claim the credit
The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
Maximum annual deduction is $12,500 ($25,000 for joint filers)
The deductible amount under the “No Tax on Overtime” provision is only the premium portion—the extra 0.5 beyond the regular hourly rate
Any overtime amount reported in Box 14 of the W-2 may be the entire amount of overtime paid to the taxpayer or it could be the overtime premium as defined in the Fair Labor Standards Act
Verifying the overtime premium line item amount is the preparer's responsibility to ascertain by due diligence. TaxSlayer Pro Support cannot assist in this verification as we do not have access to the taxpayer's pay statements and records
Various states and/or union contracts have alternative methods for calculating "overtime" or "double time", but the deduction is limited to the overtime premium under the FLSA which is to pay 1.5 times the employee’s regular hourly rate for all hours worked over 40 in a week unless the employee is exempt

Vehicle must have been purchased on or after January 1, 2025
The maximum annual deduction is $10,000
To be eligible for the deduction, the loan must be used for the purchase of a new vehicle after December 31, 2024. The vehicle must be for personal use, not business, and it cannot be a used vehicle or a leased vehicle. Additionally, the vehicle's final assembly must be in the U.S. The VIN Decoder can be used to verify manufacturing information. On NHTSA.gov, you can query a particular vehicle’s VIN to identify the specific information encoded in the number.
This deduction is gradually phased out for taxpayers with a Modified Adjusted Gross Income (MAGI) over the threshold for the year. (MAGI is the AGI with any foreign-earned income exclusion added back.) The deduction is reduced by $200 for every $1,000 that the MAGI is over the threshold. The following thresholds are in effect for the 2025 tax year:$100,000 for single filers$200,000 for Married Filing Joint

Additional Information:

IRS Instructions for Form 1040