US Edition
Ballot Measure on Taxing Tips and Overtime
UNITED STATES, JUL 16 – The law allows workers to deduct up to $12,500 in overtime and $25,000 in tips from federal taxable income, providing tax relief for middle-income earners through 2028.
- On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act at the White House, exempting federal income tax on tips and overtime wages.
- Following its passage earlier this month, the law extended tax cuts set to expire at the end of this year and made good on a campaign promise to create tax breaks on overtime and tip income, with deductions expiring in 2028.
- Under the new law, workers can deduct up to $12,500 in overtime and $25,000 in tips, IRS fact sheet says, with deductions phasing out above income thresholds.
- However, a conservative political group pushed back, opposing Colorado's Tax Expenditure Adjustment Bill to continue taxing overtime pay.
- By Oct. 2, 2025, the IRS must publish a list of occupations that regularly received tips on or before Dec. 31, 2024, and Faulkender said the rulemaking process will move forward soon.
17 Articles
17 Articles
The Quad-City Times
YES: Big bill cuts taxes on tips, loans, overtime
President Donald Trump’s One Big, Beautiful Bill Act is unmistakable evidence of a transformed Republican Party.
Are taxes on my Social Security gone? The reality is complicated
President Donald Trump made a host of campaign promises to include, in some form or other, in Republicans’ “One Big Beautiful Bill Act.” No more taxes on tips. No more taxes on overtime. No more taxes on Social Security.
'Big, beautiful bill' includes tax breaks for tips and overtime: Who benefits?
The Republican tax reform law that President Donald Trump signed into law earlier this month is in the process of being implemented, including provisions that give tax relief to workers receiving tips and overtime.Trump signed the One Big Beautiful Bill Act (OBBBA) into law July 4, which extended a variety of tax cuts set to expire at the end of this year and created some new tax breaks. Among those are the provisions related to tipped income an…
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