All Posts

For tax years 2025 - 2028, taxpayers may be allowed to deduct up to $12,500 ($25,000 if filing jointly) for qualified overtime pay. The deduction phases out for taxpayers with modified adjusted gross income (MAGI) greater than $150,000 ($300,000 for joint filers). The phaseout is a reduction of $100 of the deduction for every $1,000 of income over the $150,000/300,000 threshold. This will be a "below the line" deduction, meaning it will not reduce your adjusted gross income that is used for many other tax calculations. The amount that will be deductible is the amount of pay that exceeds your regular rate of pay for time worked in excess of 40 hours in one week. For most individuals, it will be the "half" in "time-and-a-half". To be eligible for the deduction, taxpayers must have a Social Security number (ITINs are excluded), and if married, must file a joint return. Employers will need to report the annual amount of overtime compensation received at the end of the year on an information return. (W-2, 1099, etc.)

You would likely be eligible to take the full $6k senior deduction on your 2025 tax return if the following are true: you are age 65 or older by December 31, 2025 your modified adjusted gross income is below the $75k threshold - you said it's $60k, so you should be fine there you include your social security number on your tax return Thanks for your question!

In order to claim the new additional Senior deduction of $6,000 ($12,000 if Married Filing Joint), you must be 65 or older on the last day of the tax year, have a valid social security number and to get the full amount, your modified adjusted gross income must be under $75,000 (or $150,000 for Married Filing Joint).   (The deduction phases out if your modified adjust gross income is over these amounts.)   This bonus deduction is in addition to the standard deduction for your filing status or  your itemized deductions, if you itemize.    The bonus deduction is temporary, for years 2025 to 2028.     **Please say "Thanks" by clicking the thumbs up icon in a post ***Mark the post that answers your question by clicking on the "Mark as Best Answer"

If you are 65 or older, then you can get the extra $6000 deduction along with your standard deduction.   And....as an aside that may affect your entries.....be much more careful with your use of decimals and commas.  You have put decimals in incorrect spots in your amounts.   If you do that on your tax return it will cause problems.

You'll definitely be eligible to use the new senior deduction to reduce your taxable income if you fall under the income threshold.  You can read a good overview of everything here. Some of these other provisions may impact you: State and Local tax cap raised to $40,000 if you earn up to $500,000  Qualified tip income deduction Qualified overtime pay deduction for certain workers Deduction for auto loan interest for certain vehicles 2025 will be the last year for the energy efficient credits for EVs, hybrids, charging, and energy efficient home improvements beginning in 2025 The qualified business income of 20% is permanently extended If you purchased equipment for your business, the new tax law also permanently allows you to write off 100% of your expenses for purchases like business equipment placed into service after January 19, 2025. We also have this Free Tax Reform Calculator that you can create a custom scenario in. Hope this helps! Cindy

In addition, a more accurate answer to your question can be provided by consulting a Tax Professional or Advisor who has access to all the details of your unique situation. You have been provided with a general overview to give you a better understanding of the tax changes.

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches: Married Filing Jointly: $32,000 Single or head of household: $25,000 Married Filing Separately: 0 To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the right side.

The pro rata rule comes into play when you have existing pre-tax money in other traditional IRAs.  The IRS treats all your traditional IRAs as one big account when you do a conversion. For example, if you have $93,000 in pre-tax money and $7,000 in after-tax money in your traditional IRAs, and you want to convert $7,000 to a Roth, 93% of that $7,000 will be treated as coming from the pre-tax portion, even if you intended to convert only the after-tax money.  This means that even though you made after-tax contributions, a significant portion of the conversion will be taxed as ordinary income because it's coming from your pre-tax IRA balance.  The only way to completely avoid the pro rata rule is to have no pre-tax money in your traditional IRAs before doing a Roth conversion. This can be achieved by rolling over your pre-tax IRA money into your employer's retirement plan (if allowed). 

This is very situational and not often the case.  The IRS issue various notices depending on the what information is missing or a mis-match with what is showing in their system.  This article may help you.  However, some carry over information is not reported directly to the IRS and tracked only within your own records or worksheets produced within TurboTax year over year.     Hope this helps! Cindy

Based on the information provided, let's clarify and calculate the new potential standard deduction for 2025: Initial Standard Deduction: Standard Deduction for Married Filing Jointly (MFJ): $31,500. Additional Standard Deduction for Seniors: $3,200 (for both you and your spouse, as you're both 65 or older). Total so far: $31,500 + $3,200 = $34,700. New Additional Deduction for Seniors (Effective 2025): Starting in 2025, individuals aged 65 and older may also claim an additional deduction of $6,000 each under new law. Since there are two of you (both are seniors), you can add $6,000 × 2 = $12,000. Total Standard Deduction: Combining both the existing deductions and the new ones: $34,700 + $12,000 = $46,700. Phaseout Based on Income: It's important to remember that this new deduction is subject to phaseout for income over $150,000 for those filing Married Filing Jointly. If your income exceeds $150,000, the additional $12,000 deduction may begin to phase out, and you'll need to calculate how much you're still eligible for based on your specific income level. Here is a link to the Tax Reform tax calculator:  Tax Reform tax calculator 

It won't change the taxable amount of your SS or your AGI.  You will get  a 6,000 (12,000 if both over 65) deduction off the AGI which will reduce your taxable income.  It is phased out if you make over 150,000 married or 75,000 Single.   It is in addition to the Standard Deduction (or itemized deduction).   See this post for more info https://ttlc.intuit.com/community/file-with-turbotax/discussion/re-standard-deduction-2025/01/3696577#M40350