tipped workers, big beautiful bill
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Trump has signed the "big, beautiful" bill, enacting sweeping changes to programs like SNAP and Medicaid. Here's what Tennesseans should know.
Midrange earners stand to see meaningful savings, too. A warehouse supervisor earning $60,000 with $10,000 in overtime could shave a couple thousand dollars off their federal tax bill. A hotel bartender making $45,000 plus $5,000 in tips could get back all the federal taxes withheld from their tips.
The 'No Tax on Tips' provision, which also applies to overtime pay, is part of President Trump's One Big Beautiful Bill Act. Here's the fine print.
The new bill will allow employees to make a tax deduction from their gross income up to $25,000 from earned tips. The tax deduction is limited to voluntary cash tips that are received by an employee. According to the bil l, tips have to be reported to an employer for purposes of withholding payroll taxes.
We've been hearing a lot about the newest 'no tax on tips and overtime' that's coming as part of the "Big, Beautiful Bill," but what does it mean for Arizonans?
In the newly signed ‘Big, Beautiful Bill,’ workers will see changes on how they're taxed on tips, a major priority in President Donald Trump’s agenda.