What to know — and what isn’t known yet — about US tax deductions for tips and overtime pay
By DEE-ANN DURBIN, AP Business Writer
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.
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But which workers will qualify for the new deductions is among the details the government has to work out after President Donald Trump’s signature spending and policy package won final congressional approval.
Under the bill Trump signed into law on July 4, the U.S. Treasury Department must publish a list by Oct. 2 of occupations that qualify for tax-free tips. The department is also expected to publish guidance on how to report tips and overtime pay, and what documentation will be required.