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Adjustments to income and the new OBBBA deductions

SEE 1 Chapter 15 · IRS outline 2D2, 2D3, 2D4

Adjustments to income come off before AGI, and AGI drives dozens of other limits, so a dollar here can be worth more than a dollar of itemized deductions. Then OBBBA added four brand-new deductions for 2025 to 2028 that anyone can claim, itemizer or not: tips, overtime, seniors and car loan interest. Grace works overtime shifts, Lily's roommate is a server, Hank and Rose are over 65, and Daniel just financed a new pickup. Nadia has a new schedule to teach: Schedule 1-A.

In this chapter

1. Adjustments, AGI and the new Schedule 1-A
2. Health savings accounts
3. Student loan interest, educators and other adjustments
4. OBBBA: no tax on tips
5. OBBBA: no tax on overtime
6. OBBBA: the senior deduction and car loan interest

This chapter has 6 lessons and 69 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• HSAs
• student loan interest
• educator expenses
• alimony
• military moving
• other adjustments
• deductions for tips, overtime, seniors and car loan interest

Chapter 14: Sales of property: home, installment, like-kind and recapture · Chapter 16: Standard and itemized deductions