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General Discussion

Wiz Imp

(6,472 posts)

10. Not really. The amount of Tips and Overtime that are eligible to be excluded from taxes is very small.

Reply to NowISeetheLight (Original post)

Thu Jul 3, 2025, 10:22 PM

Jul 3

Only $25,000 for Tips and only $12,500 for OT.

https://www.fidelity.com/learning-center/personal-finance/one-big-beautiful-bill

Temporary provisions good for 4 years
In addition to the permanent provisions, the legislation includes numerous temporary deductions and credits good only for tax years 2025 through 2028, including:

No taxes on tips or overtime.  The new law caps deductions on tipped income of up to $25,000 and overtime income of $12,500 ($25,000 for joint filers). The deduction would begin to phase out for single filers with income over $150,000 and $300,000 for joint filers.

And note, both provisions are only in effect for 4 years

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Highlight:

No Tax on Overtime & Tips - I Hope I'm Wrong [View all] NowISeetheLight Jul 3 OP

I think you are edhopper Jul 3 #1

And BOSSHOG Jul 3 #2

What percentage of tips left in cash are declared as income? MichMan Jul 3 #3

That's Rebl2 Jul 3 #4

The wages/tips still have to be reported and Social Security Taxes paid. The Bill allows a deduction from income Silent Type Jul 3 #5

Sounds right. Money under the table (i.e., not reported KPN Jul 3 #6

I don't think so FHRRK Jul 3 #7

"Or do they still plan to collect SS on the overtime and declared tips?" cadoman Jul 3 #8

I read that it is only for a two year period Lifeafter70 Jul 3 #9

Not really. The amount of Tips and Overtime that are eligible to be excluded from taxes is very small. Wiz Imp Jul 3 #10

Latest Discussions»General Discussion»No Tax on Overtime & Tips...»Reply #10