Tax Filing•March 5, 2026•7 min read

Free AI Tax Filing Is Here — But Do You Know What to Claim?

Prime Meridian just launched free AI-powered tax filing. It's a game-changer for access. But here's the thing: filing your taxes and maximizing your taxes are two completely different skills.

💡 Key Takeaway

Free filing tools help you submit your return. But the One Big Beautiful Bill Act created 5+ new deductions that most people don't know about. If you don't know what you qualify forbefore you file, no AI can help you claim it.

What Is Prime Meridian?

Prime Meridian launched on March 5, 2026 as a free AI-powered tax filing service. It's backed by former IRS Commissioner Danny Werfel as a strategic advisor, and it fills the gap left when the IRS discontinued its Direct File program.

The service handles standard tax situations and understands the new OBBB tax law changes — overtime deductions, tip deductions, enhanced child tax credit, and more.

This is genuinely good news for taxpayers. Free, accurate filing means more people can file without paying $100-300 for tax software. We're not here to knock it.

The Gap No Filing Tool Can Fix

Here's the problem: you can only claim deductions you know about.

Tax filing tools — whether TurboTax, Prime Meridian, or a CPA — work with the information you give them. If you don't know you qualify for the overtime deduction, you won't enter your overtime hours. If you don't know about the car loan interest deduction for US-assembled vehicles, you won't provide your auto loan details.

⚠️ The OBBB Knowledge Gap

A recent NYT investigation found that many workers believe "No Tax on Overtime" meansall tax on overtime pay is eliminated. It's not. It's a deduction with:

A $12,500 cap ($25,000 if married filing jointly)
Phase-outs starting at $150,000 MAGI ($300,000 MFJ)
Only for W-2 employees (not 1099 contractors)
A 2028 sunset — this expires

If you walk into any filing tool thinking overtime is fully tax-free, you'll be confused when the math doesn't add up. And you might miss strategies to maximize what you can claim.

5 OBBB Deductions to Understand Before You File

1. Overtime Deduction ($12,500/$25,000 cap)

Deduct qualified overtime compensation on Schedule 1-A. For 2025, your employer is not required to separately report overtime on your W-2 — you'll need to calculate it from pay stubs. Starting 2026, look for W-2 Box 12, Code TT.

👉 Calculate your overtime savings

2. Tips Deduction ($25,000 cap)

Cash and reported tips are deductible up to $25,000. This stacks with the overtime deduction — restaurant workers, bartenders, and hotel staff can potentially claim both. Phase-out starts at $150,000 MAGI.

👉 See your combined savings

3. Car Loan Interest Deduction ($10,000 cap)

Interest on auto loans for vehicles assembled in the United States is now deductible. The vehicle doesn't need to be new. Phase-out starts at $100,000 MAGI ($200,000 MFJ).

4. Enhanced Senior Standard Deduction

Taxpayers 65 and older get an additional $6,000/$12,000 standard deduction on top of the regular amount. Phase-out starts at $75,000 MAGI ($150,000 MFJ). This is separate from the existing elderly/blind additional deduction.

5. SALT Cap Increase ($10K → $40K)

The state and local tax deduction cap quadrupled for taxpayers with MAGI under $500,000. If you live in a high-tax state (NY, CA, NJ, CT, IL), this could be worth thousands more in deductions — but only if you itemize.

The Smart Approach: Educate First, File Second

The best tax outcome isn't about which software you use to file — it's about knowing what you're entitled to before you start.

✅ Our Recommended Workflow

Use our free OBBB calculator to see exactly which deductions you qualify for and how much you could save
Take the eligibility quiz to get a personalized breakdown
Gather your documentation — pay stubs for overtime, tip records, auto loan statements, property tax bills
Then file — whether with Prime Meridian (free), TurboTax, H&R Block, or your CPA. You'll know exactly what to enter.

Frequently Asked Questions

Is Prime Meridian safe to use?

It's backed by a former IRS Commissioner and launched with institutional backing. As with any new service, verify your return matches your expectations before submitting. Our calculator can help you cross-check the numbers.

Does OBBB Tax Guide compete with Prime Meridian?

No — we're complementary. We help you understand your deductions and estimate your savings. Prime Meridian (or any tax software) helps you file the return. Think of us as the study guide before the exam.

Should I still use TurboTax or H&R Block?

Paid services often offer audit protection, prior-year import, and expert review. If your tax situation is complex (multiple income sources, investments, business income), a paid service or CPA may still be worth it. For straightforward W-2 filers, free options like Prime Meridian are a great choice.

Know Your Savings Before You File

Our free calculator shows you exactly which OBBB deductions you qualify for — overtime, tips, car loan interest, senior deductions, and more. Takes 2 minutes.

📊 Calculate My Savings 📝 Take the Eligibility Quiz