US EditionBallot Measure on Taxing Tips and Overtime
UNITED STATES, JUL 16 – The One Big Beautiful Bill Act offers up to $1,800 in average annual tax cuts for tipped workers and $1,400 for overtime workers, with provisions expiring in 2028.
- On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act at the White House, removing federal income tax on tips and overtime, with deductions ending in 2028.
- The law creates a tip deduction effective 2025–2028 for occupations that received tips by Dec. 31, 2024, with a $25,000 cap and phase-out over $150,000 MAGI.
- The nonpartisan Tax Policy Center estimated about 2% of households would benefit with an average $1,800 tax cut, while about 8% of hourly workers and 4% of salaried workers regularly work overtime, according to Yale Budget Lab.
- The Treasury Department and the IRS are updating processes for implementation, while Deputy Treasury Secretary Michael Faulkender called it `one of the big lifts` and noted confusion over `cash tips`.
- By Oct. 2, 2025, the IRS must publish a list of occupations that received tips before Dec. 31, 2024, and the IRS will provide transition relief for tax year 2025.
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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.
·New Hampshire, United States
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'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…
·United States
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Coverage Details
Total News Sources13
Leaning Left4Leaning Right1Center4Last UpdatedBias Distribution44% Left, 44% Center
Bias Distribution
- 44% of the sources lean Left, 44% of the sources are Center
44% Center
L 44%
C 44%
11%
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