What to Know About Tip Tax Deductions

Another View: Until we raise the minimum wage, please keep tipping

Our nation’s paltry federal minimum wage of just $7.25 hourly is rightly criticized as far too little to sustain a worker, let alone a family, in 2025. That’s bad enough, but did you know that there’s an even lower floor for workers who receive tips on the job? That’s right. The federal minimum wage for tipped workers is just $2.13 an hour — and has been for 30 years. Theoretically, employers are meant to cover the difference if tips don’t raise…

What to know about tip tax deductions

Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year.

What to know about future tip tax deductions

Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year.

Overtime pay now tax-deductible: Details on Trump’s new tax break

Millions of Americans can now keep more of their overtime earnings courtesy of language included in President Donald Trump’s “Big Beautiful Bill.”

Tax breaks for tips, overtime and Social Security, and a deadline for EV buyers

The "Big Beautiful Bill" did not actually eliminate taxes on tips, overtime, or Social Security, but many people will be able to claim new income tax deductions that will reduce federal taxes on such income.

Trump Touts “One Big Beautiful Bill”: No Tax on Tips, Social Security, Overtime

President Trump on the One Big Beautiful Bill: “It’s the most incredible bill … When you think about No Tax on Tips, No Tax on Social Security, No Tax on Overtime, a big tax cut in addition to that — plus we’re saving the tax cut that we made years ago.”