IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS

The following information was released by the Internal Revenue Service (IRS):

Internal Revenue Service Chief Executive Officer Frank J. Bisignano and Senator Bernie Moreno (OH) toured the Cleveland area today to highlight Working Families Tax Cuts Act provisions on no tax on car loan interest, no tax on overtime, and the enhanced deduction for seniors.

"It's rewarding to visit Ohio and see first-hand how President Trump's Working Families Tax Cuts are ensuring American families and taxpayers are keeping more of their hard-earned paychecks," said IRS CEO Frank J. Bisignano. "Families in Ohio and the rest of the country are benefiting from the law, including the provisions that make it easier to afford a vehicle assembled in the United States, and reduce the tax burden on our great senior citizens and on those working overtime."

"Thanks to the Working Families Tax Cuts, Ohioans received more of their hard-earned dollars back in their pockets," said Senator Moreno. "I am proud to have spearheaded the auto loan interest tax deduction to allow hardworking Ohioans to afford American-made vehicles."

At the Ford Engine Plant in Brook Park, OH, Bisignano and Moreno talked with manufacturing leadership, frontline workers, and regional auto dealers on the impact of tax policy on domestic manufacturing, affordability, and economic growth.

Moreno is a leader on the no tax on car loan interest provision. It is a deduction of up to $10,000 for individuals who paid interest on a loan to purchase a qualified vehicle after Dec. 31, 2024. The vehicle must be a new personal use vehicle with final assembly in the United States.

As of mid-May, about 54,000 Ohio filers claimed the deduction on car loan interest, totaling about $88 million. Nationally, over 1.4 million filers benefited from the deduction with about $2.6 billion claimed.

Bisignano and Moreno also visited the Middleburg Heights, OH, Social Security Administration office to highlight the benefits of the enhanced senior deduction in the Working Families Tax Cuts Act, which is $6,000 in addition to the standard deduction for individuals 65 or older. Married couples with two eligible spouses can receive an extra deduction of $12,000. Taxpayers must include their Social Security numbers on the return and file jointly, if they are married, to qualify.

About 1.4 million Ohioans benefitted from the senior deduction, with the total amount of deductions claimed approaching $7.9 billion. Nationally, over 35 million seniors benefitted from the deduction with more than $193 billion claimed.

Under the no tax on overtime provision, for tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the amount that exceeds their regular rate of pay (generally, the "half" portion of "time-and-a-half" compensation) and is reported on a Form W-2 or Form 1099. The maximum annual deduction is $12,500 per individual.

More than 1.2 million Ohio filers claimed the overtime deduction, totaling about $3.4 billion. Nationally, about 29.4 million filers claimed the deduction totaling almost $92.7 billion.

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