Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

Real Tax Planning vs. "April 15th Thinking"

25 Mar 2026 · 1 min

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In this segment, Mike Milligan explains two newer tax‑benefit provisions that can significantly reduce taxable income for eligible workers and retirees. He details the overtime deduction, which lets qualifying overtime earnings be deducted up to $12,500 for single filers and up to $25,000 for married couples filing jointly, subject to income phase‑outs. He then describes the senior deduction for taxpayers over 65, which stacks on top of both the standard deduction and the existing age‑65 deduction, providing an extra $6,000 per person at certain income levels. Milligan emphasizes that these provisions are especially valuable for retirees on fixed incomes.

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There's also, on top of the tip deduction, there's now an overtime deduction where eligible workers can deduct up to $12,500 in qualifying overtime pay and up to $25,000 for married couples filing jointly, again, with income phase-outs. And then, as I mentioned earlier, if you're over 65, there's the new senior deduction layered on top of the standard deduction and on top of the age 65 deduction, which is especially important for retirees on fixed incomes. Those additional senior deductions are an additional $6,000 per person at certain income limits.