Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to
deduction limitations
Sep 10, 2025
Payroll tax implications of new tax breaks on tips and overtime
- By Victor Dozzi
- Taxes
- 0 Comments
Read More