If you’ve been listening to Business by the Numbers for a while, you know I’m not big on surprises—especially when it comes to taxes. But with a new year and a new tax season officially underway, there are a few changes worth slowing down and really understanding. Some of these we’ve touched on before, some are brand new, and one of them is just plain awesome if you qualify.

Let’s walk through the big four.

First Up: Tips.
I’m going to be crystal clear here because I keep getting asked—auto repair shops do not qualify for the new tip rules. This industry has never traditionally reported tip income, and trying to force it now is not going to fly. If you run a bar or a restaurant, sure, different story. But for repair shops? Don’t do it. If you think you’re the unicorn here, shoot me a message and we’ll talk it through. Otherwise, let’s move on.

Overtime is where things get interesting—and confusing.
Yes, employees can now deduct qualified overtime. No, owners do not qualify. And no, it’s not your total overtime pay. What you’re deducting is the overtime premium—the extra half, not the full time-and-a-half.

Here’s the simple version: divide overtime pay by three. That’s the qualified portion. Make $150 in overtime? Only $50 counts. And no, this isn’t on the W-2 for 2025, which means employees need their pay stubs. Is it messy? Absolutely. Is it still better than taking no deduction at all? 100%.

As shop owners, you’re not saving money directly from this—but I do think you have a responsibility to tell your team about it. The only real winner when people miss deductions is the IRS, and we’re not letting them win.

Next: car loan interest—and this one sounds great until you read the fine print.
You can deduct up to $10,000 of interest on a personal vehicle loan. That’s real money. But the car has to be new, under 14,000 pounds, purchased after January 1, 2025, personally registered, and—here’s the big one—final assembly must be in the U.S.

Oh, and there are income phase-outs. And used cars don’t qualify. And if the vehicle is already in your business, you’re probably already getting better deductions anyway. So yes, some people will benefit—but probably not as many as the headlines suggest.

Now for my favorite one—the bonus you don’t have to do anything to get.
If you were born before 1961, congratulations. The IRS is officially calling you a senior, and that comes with a $6,000 deduction per person. Married and both over 65? That’s $12,000. No forms to track down. No extra paperwork. It’s already baked into the software.

Honestly, this is the cleanest, most targeted tax break I’ve seen in a while—and it actually rewards people who’ve been paying into the system for decades.

Bottom line: these rules are here whether we like them or not. The goal isn’t to game the system—it’s to understand it and use it correctly. If you’re a client, we’ll help make sure nothing gets missed. If you’re not, bring these up with your accountant. Missed deductions don’t roll over.

And remember—don’t give the IRS a win.