Best Tax Software for OBBB Deductions
You've calculated your savings. Now file and claim them.
We tested every major tax filing platform for full support of all 6 OBBB deductions — overtime, tips, Social Security, car loans, SALT, and child tax credit. Here's what we found.
⚠️ Not All Tax Software Handles OBBB Correctly
The One Big Beautiful Bill introduced 6 new deductions that didn't exist before 2025. Some tax software platforms were slow to update. Filing with software that doesn't properly support Schedule 1-A could mean leaving thousands of dollars on the table.
We scored each platform on OBBB-specific features — not just general tax filing quality. Our "OBBB Score" reflects how well each handles the new deductions.
Best Overall
TurboTax
Full OBBB support + best guidance
Best Value
FreeTaxUSA
Free federal with full OBBB coverage
Best Hybrid
H&R Block
Online + in-person tax pro option
OBBB Feature Comparison
| Feature | 💎 TurboTax | 🏆 FreeTaxUSA | 🟩 H&R Block | ⚔️ TaxSlayer | 📊 TaxAct | 🆓 Prime Meridian |
|---|---|---|---|---|---|---|
| Overtime Deduction | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Tips Deduction | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Social Security Deduction | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Car Loan Deduction | ✅ | ✅ | ✅ | ✅ | ❌ | ✅ |
| SALT Cap Increase ($40K) | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Child Tax Credit ($2,500) | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Schedule 1-A Support | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| OBBB Score | 95/100 | 92/100 | 90/100 | 87/100 | 82/100 | 80/100 |
| Price | Free – $129+ | Free federal, $14.99 state | Free – $85+ | Free – $62.95+ | Free – $69.99+ | Free (federal + state) |
Detailed Reviews
1. TurboTax
⭐ Editor's PickMost popular, full OBBB support
Free – $129+
Best for: Most filers — especially if you have complex deductions
✅ Pros
- •Full Schedule 1-A integration for all 6 OBBB deductions
- •Step-by-step guidance through overtime and tips calculations
- •Import W-2 data (including Box 12 Code TT for 2026+)
- •Audit defense with Max Benefit guarantee
- •Largest knowledge base for new tax law changes
❌ Cons
- •Most expensive option for premium tiers
- •Free tier limited to simple returns (no OBBB deductions)
- •Aggressive upselling during filing process
2. FreeTaxUSA
💰 Best ValueBest value — federal filing is free
Free federal, $14.99 state
Best for: Budget-conscious filers who want full OBBB coverage
✅ Pros
- •Free federal filing includes ALL OBBB deductions
- •Schedule 1-A support added for 2025 tax year
- •Audit assist included at no extra cost
- •Clean, no-upsell interface
- •State filing only $14.99 (vs $50+ elsewhere)
❌ Cons
- •Less hand-holding than TurboTax
- •No W-2 import (manual entry required)
- •Limited phone support on free tier
3. H&R Block
In-person + online, trusted name
Free – $85+
Best for: Filers who want the option to visit a tax pro in person
✅ Pros
- •Full OBBB deduction support across all tiers
- •Option to have a tax pro review your return
- •In-person offices for complex situations
- •Good W-2 import with Box 14/Code TT support
- •Free tier covers more situations than TurboTax Free
❌ Cons
- •In-person visits can be expensive ($200+)
- •Software interface less intuitive than TurboTax
- •Upsells for premium features
4. TaxSlayer
Fast and affordable for straightforward returns
Free – $62.95+
Best for: Self-employed and gig workers with overtime/tips income
✅ Pros
- •Self-Employed tier includes Schedule 1-A at $62.95
- •Fast filing process — less hand-holding, more efficient
- •Military discount (free federal + state)
- •Good coverage of tips deduction for service workers
❌ Cons
- •Free tier very limited (1040 only)
- •Less guidance on new OBBB deductions
- •Interface feels dated compared to competitors
5. TaxAct
Solid mid-range option
Free – $69.99+
Best for: Filers comfortable with some DIY who want to save money
✅ Pros
- •Supports overtime and tips deductions
- •Price lock guarantee — price won't change after you start
- •Xpert Assist option for tax pro help
- •Good for W-2 wage earners claiming OT deduction
❌ Cons
- •Car loan deduction support limited in basic tier
- •Schedule 1-A guidance less thorough than TurboTax
- •Slower to update for new tax law changes
6. Prime Meridian
🆕 New for 2026Free AI-powered filing — brand new for 2026
Free (federal + state)
Best for: Filers comfortable with AI who want 100% free filing
✅ Pros
- •Completely free — federal AND state
- •AI-powered, adapts to new OBBB deductions quickly
- •Former IRS Commissioner Danny Werfel as strategic advisor
- •Modern interface, mobile-friendly
- •Fills gap left by IRS Direct File discontinuation
❌ Cons
- •Brand new service (launched March 2026) — limited track record
- •No in-person support option
- •AI guidance may miss edge cases in OBBB deductions
- •Unknown data retention and privacy policies long-term
How to File Your OBBB Deductions (Step by Step)
Calculate Your Savings
Use our OBBB Calculator to estimate your total deduction across all 6 categories. Know your numbers before you file.
Gather Your Documents
You'll need: W-2 (check Box 14 or Box 12 Code TT for overtime), pay stubs showing overtime hours and rates, tip records, car loan statements, and state/local tax receipts for SALT.
Choose Your Tax Software
Pick a platform from our comparison above that supports all the OBBB deductions you qualify for. We recommend TurboTax for maximum guidance or FreeTaxUSA for best value.
Complete Schedule 1-A
Your tax software will generate IRS Schedule 1-A automatically. This is the new form specifically for OBBB deductions. Double-check the numbers match what our calculator estimated.
File and Track Your Refund
E-file for fastest processing. The IRS typically processes Schedule 1-A deductions within the standard 21-day refund window. Use IRS Where's My Refund to track status.
Frequently Asked Questions
Do I need special tax software for OBBB deductions?▼
Not necessarily, but you need software that has been updated for the 2025 tax year changes. All major platforms (TurboTax, H&R Block, FreeTaxUSA, TaxSlayer, TaxAct) now support Schedule 1-A. Some smaller or free options may not have full coverage yet.
Can I claim OBBB deductions with the standard deduction?▼
Yes! OBBB deductions (overtime, tips, Social Security) are "above-the-line" deductions on Schedule 1-A. You can claim them AND take the standard deduction — you don't have to itemize.
My employer didn't report overtime separately on my W-2. What do I do?▼
For the 2025 tax year, employers are NOT required to separately report overtime pay. You'll need to calculate your qualified overtime compensation from your pay stubs. Starting in 2026, employers MUST report it in W-2 Box 12, Code TT.
Is Prime Meridian safe to use? It's brand new.▼
Prime Meridian launched in March 2026 with former IRS Commissioner Danny Werfel as strategic advisor, which adds credibility. However, it has no track record yet. If you're uncomfortable, stick with established options like TurboTax or FreeTaxUSA.
How much can I save with OBBB deductions?▼
It depends on your income and situation. The average overtime worker saves $1,200-3,500, tipped workers save $800-2,000, and the SALT increase benefits high-tax-state residents significantly. Use our calculator to get a personalized estimate.
Do these deductions expire?▼
Yes — the overtime and tips deductions are available through the 2028 tax year only (they sunset after that). The SALT cap increase and child tax credit changes have different timelines. File sooner rather than later to capture the savings.
Not sure which deductions you qualify for?
Use our free calculator to estimate your savings, then come back to file.
Disclosure: Some links on this page may be affiliate links. If you purchase tax software through our links, we may earn a small commission at no additional cost to you. This helps us keep OBBBTaxGuide.com free and up-to-date. Our rankings and reviews are based on independent testing of OBBB deduction support and are not influenced by affiliate relationships.