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.

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.

Trump’s new megabill creates temporary deductions for federally taxable tips and qualified overtime pay, but there are some caveats.

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Individuals who earn more than $150,000 are not eligible for the tax cut. When will no tax on tips go into effect? No tax on tips and overtime is in effect for the 2025 tax year.

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Here’s what to know: How does no tax on overtime work? Now that President Donald Trumps signed the bill, workers will be able to deduct up to $25,000 in reported tips and $12,500 in overtime pay ...