Tipped workers can deduct up to $25,000 of qualified tips on their federal return for 2025 through 2028. Here is who qualifies, what changes on your 2026 W-2, and why California still taxes tips.

Workers can deduct up to $12,500 ($25,000 joint) of qualified overtime pay on their federal return through 2028. Only the federally required premium counts, 2026 W-2s show it in box 12 code TT, and California does not follow the deduction.

Taxpayers 65 and older can claim an extra $6,000 deduction each for 2025 through 2028, on top of the regular senior standard deduction. The deduction phases out with income, so year-end choices about IRA withdrawals and gifts can make a difference.

For 2025 through 2028, you may be able to deduct up to $10,000 a year of interest on a loan for a new, U.S.-assembled personal vehicle. Leases and used cars do not qualify, and the deduction phases out above $100,000 of income ($200,000 joint).

The federal cap on deducting state and local taxes rose from $10,000 to $40,000 for 2025 and $40,400 for 2026, but it shrinks for incomes above $505,000. For many San Diego homeowners, itemizing is worth another look.

Treasury began automatically opening Trump Accounts for eligible children on October 1, 2026. Parents still need to claim the account, and children born from 2025 through 2028 can receive a $1,000 government deposit only if a parent elects it on Form 4547.

The 2026 brackets, standard deduction, retirement plan limits, child tax credit, estate and gift amounts, and the credits that expired after 2025, gathered in one place for year-end planning.

Permanent 100% bonus depreciation for property acquired after January 19, 2025, a $2.56 million Section 179 limit for 2026, and immediate deductions for domestic research costs. Here is how to use them before year-end, and why California's numbers will differ.

The 1099-NEC and 1099-MISC threshold rises from $600 to $2,000 for payments made in 2026, and payment apps report on Form 1099-K only above $20,000 and 200 transactions. Fewer forms, but every dollar of income is still taxable.

Starting in 2026, people who take the standard deduction can deduct up to $1,000 ($2,000 joint) of cash gifts to charity, while itemizers face a new 0.5% of income floor. Here is how to plan your year-end giving.