{"id":5568,"date":"2025-01-26T19:37:44","date_gmt":"2025-01-26T19:37:44","guid":{"rendered":"https:\/\/tysllp.com\/?p=5568"},"modified":"2025-12-26T19:38:40","modified_gmt":"2025-12-26T19:38:40","slug":"the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime","status":"publish","type":"post","link":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/","title":{"rendered":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-boost-your-bottom-line-how-does-the-one-big-beautiful-bill-act-create-tax-free-tips-amp-overtime-for-workers-and-impact-tax-prep\">Boost Your Bottom Line: <strong>How does the One Big Beautiful Bill Act create Tax-Free Tips &amp; Overtime for workers and impact tax prep?<\/strong><\/h2>\n\n\n\n<p>The <strong>One Big Beautiful Bill Act<\/strong> (OBBBA), signed into law on July 4, 2025, provides a federal income tax deduction for a portion of qualified tipped income and qualified overtime pay for tax years 2025 through 2028. <strong>Specifically<\/strong>, it allows a deduction of up to <strong>$25,000 for tips<\/strong> and <strong>$12,500 for overtime<\/strong> compensation on an individual&#8217;s tax return. <strong>Consequently<\/strong>, workers see a lower Adjusted Gross Income (AGI), which ultimately reduces their federal income tax liability. This change requires meticulous record-keeping as a key <strong>tax prep<\/strong> best practice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&#x1f4b0; The Two New Deductions: Rules and Limits<\/strong><\/h2>\n\n\n\n<p>The OBBBA introduces two major, temporary tax benefits for millions of working Americans. <strong>Therefore<\/strong>, businesses must understand the nuances of each deduction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. The <\/strong><strong>Tax-Free Tips<\/strong><strong> Deduction<\/strong><\/h3>\n\n\n\n<p>This deduction directly benefits workers in the service industry. <strong>However<\/strong>, specific rules apply to the type of income and the occupation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deduction Limit:<\/strong> Workers may deduct up to <strong>$25,000<\/strong> in qualified tips per year. <strong>Conversely<\/strong>, married couples filing jointly can deduct up to <strong>$50,000<\/strong>.<\/li>\n\n\n\n<li><strong>Qualified Income:<\/strong> <strong>Specifically<\/strong>, the deduction covers voluntary cash or charged tips received from customers. <strong>Furthermore<\/strong>, it includes tips received through tip-sharing arrangements.<\/li>\n\n\n\n<li><strong>Exclusions:<\/strong> <strong>Crucially<\/strong>, mandatory service charges or auto-gratuities do not qualify as tips.<\/li>\n\n\n\n<li><strong>Eligibility:<\/strong> The deduction is limited to employees and self-employed individuals in occupations that <strong>customarily and regularly received tips<\/strong> before December 31, 2024. The IRS must publish a list of these eligible occupations.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"684\" src=\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-1024x684.webp\" alt=\"Tax-Free Tips &amp; Overtime\" class=\"wp-image-5561\" srcset=\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-1024x684.webp 1024w, https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-300x200.webp 300w, https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-768x513.webp 768w, https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-100x67.webp 100w, https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office-865x577.webp 865w, https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-adult-smart-asian-business-woman-black-casual-suit-using-laptop-working-overtime-urban-office.webp 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>2. The <\/strong><strong>Tax-Free Overtime<\/strong><strong> Deduction<\/strong><\/h3>\n\n\n\n<p>This deduction aims to boost the take-home pay for non-exempt workers. <strong>However<\/strong>, it only applies to the premium portion of overtime pay.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deduction Limit:<\/strong> Workers may deduct up to <strong>$12,500<\/strong> of qualified overtime compensation. <strong>Similarly<\/strong>, joint filers may deduct up to <strong>$25,000<\/strong>.<\/li>\n\n\n\n<li><strong>Qualified Income:<\/strong> <strong>Only<\/strong> the premium pay that exceeds the regular rate of pay qualifies. <strong>For example<\/strong>, if an employee earns time-and-a-half, the deduction covers only the &#8220;half&#8221; portion of that pay.<\/li>\n\n\n\n<li><strong>FLSA Requirement:<\/strong> <strong>Moreover<\/strong>, the overtime must be compensation required by the federal Fair Labor Standards Act (FLSA). <strong>Therefore<\/strong>, overtime paid solely under state laws or collective bargaining agreements does not qualify.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&#x1f4c8; Phase-Outs and Eligibility: Income Limits<\/strong><\/h2>\n\n\n\n<p>Both deductions phase out for higher-income earners. <strong>Thus<\/strong>, not every worker will receive the full benefit.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Filing Status<\/strong><\/td><td><strong>MAGI Phase-Out Starts<\/strong><\/td><td><strong>Deduction Is Reduced By<\/strong><\/td><\/tr><tr><td>Single\/Other Filers<\/td><td>Over <strong>$150,000<\/strong><\/td><td>$100 for every $1,000 over the limit<\/td><\/tr><tr><td>Married Filing Jointly<\/td><td>Over <strong>$300,000<\/strong><\/td><td>$100 for every $1,000 over the limit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Furthermore<\/strong>, both deductions are <strong>above-the-line<\/strong>, meaning you can claim them whether you itemize or take the standard deduction. <strong>However<\/strong>, married individuals must file a joint return to claim either deduction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&#x1f4dd; Best Practices: <\/strong><strong>Tax Prep<\/strong><strong> for the New Deductions<\/strong><\/h2>\n\n\n\n<p>How do I get started and what are the <strong>best practices<\/strong> for claiming these new deductions? <strong>First<\/strong>, accurate record-keeping is the most important step.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Documentation is Your Deduction Key<\/strong><\/h3>\n\n\n\n<p>Employees must maintain meticulous records. <strong>Consequently<\/strong>, this simplifies the final <strong>tax prep<\/strong> process.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tip Logs:<\/strong> Workers should keep contemporaneous tip logs for all cash and non-cash tips received.<\/li>\n\n\n\n<li><strong>W-2 Review:<\/strong> <strong>In addition<\/strong>, employers must report qualified tips and overtime compensation on Form W-2. <strong>Therefore<\/strong>, workers must check that their W-2 accurately details these amounts.<\/li>\n\n\n\n<li><strong>Calculation:<\/strong> <strong>Specifically<\/strong>, the deduction is for the worker, but many will need to calculate the &#8220;half&#8221; portion of their overtime premium themselves for the 2025 tax year.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Impact on AGI and Other Benefits<\/strong><\/h3>\n\n\n\n<p>The new deductions lower your <strong>Adjusted Gross Income (AGI)<\/strong>. <strong>Consequently<\/strong>, this creates a domino effect of benefits.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unlocking Credits:<\/strong> <strong>For instance<\/strong>, a lower AGI might make a taxpayer eligible for other tax credits or deductions that have AGI phase-out limits.<\/li>\n\n\n\n<li><strong>TYS Source Signal:<\/strong> Navigating the complex interplay of these new deductions with existing tax law requires expert help. With <strong>60 years of construction accounting and high-net-worth expertise<\/strong>, TYS advises on the total impact these deductions have on your overall financial plan, especially in states like <strong>New York and California<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&#x1f3d7;&#xfe0f; The Construction Tie-in: Overtime Focus<\/strong><\/h2>\n\n\n\n<p>While tips affect many service industries, the overtime deduction is highly relevant to the <strong>construction industry<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Overtime Premium for Construction Workers<\/strong><\/h3>\n\n\n\n<p>The <strong>Tax-Free Overtime<\/strong> deduction directly impacts skilled trades and laborers. <strong>Generally<\/strong>, these roles frequently work FLSA-required overtime.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Job Costing Impact:<\/strong> <strong>For companies<\/strong>, the new deduction does not change the employer&#8217;s cost or payroll tax liability (FICA taxes still apply to the full amount). <strong>However<\/strong>, it becomes a major talking point for employee recruitment and retention.<\/li>\n\n\n\n<li><strong>Record Integrity:<\/strong> <strong>Therefore<\/strong>, construction payroll departments must accurately code and track the <strong>overtime premium<\/strong> paid. This ensures employees have the correct documentation for their <strong>tax prep<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q&amp;A: Tax-Free Tips &amp; Overtime<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Question<\/strong><\/td><td><strong>Answer<\/strong><\/td><\/tr><tr><td><strong>Q1: Does this deduction affect my Social Security and Medicare taxes?<\/strong><\/td><td><strong>No.<\/strong> This deduction applies only to <strong>federal income tax<\/strong>. <strong>Therefore<\/strong>, your tips and overtime compensation still remain fully subject to Social Security and Medicare taxes.<\/td><\/tr><tr><td><strong>Q2: Does the deduction apply to tips and overtime earned in 2024?<\/strong><\/td><td><strong>No.<\/strong> The new deductions are effective for the tax years <strong>2025 through 2028<\/strong>. <strong>Consequently<\/strong>, 2024 income does not qualify for this relief.<\/td><\/tr><tr><td><strong>Q3: What if my state does not conform to the federal deduction?<\/strong><\/td><td>Some states, like <strong>New York<\/strong>, may choose to &#8220;decouple&#8221; from these federal changes. <strong>Therefore<\/strong>, the income remains fully taxable at the state level.<\/td><\/tr><tr><td><strong>Q4: As an employer, what is my new reporting responsibility?<\/strong><\/td><td>Employers must track and report the amount of <strong>qualified tips<\/strong> and <strong>qualified overtime compensation<\/strong> on Forms W-2 or 1099. <strong>This provides<\/strong> the necessary documentation for the worker&#8217;s deduction.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Ensure you maximize these powerful new tax deductions without triggering an audit. <strong><a href=\"https:\/\/tysllp.com\/contact-us\">Contact TYS today <\/a>for specialist tax preparation and Construction Accounting services in Fairport, NY, or Walnut Creek, CA.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boost Your Bottom Line: How does the One Big Beautiful Bill Act create Tax-Free Tips &amp; Overtime for workers and impact tax prep? The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, provides a federal income tax deduction for a portion of qualified tipped income and qualified overtime pay for tax years 2025 through 2028. &#8230; <a href=\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5567,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[543,9,1261],"tags":[1273],"class_list":["post-5568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-tax-accounting","category-tax-prep","tag-onebigbeautifulbillact-taxfreetips-overtimededuction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime<\/title>\n<meta name=\"description\" content=\"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime\" \/>\n<meta property=\"og:description\" content=\"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\" \/>\n<meta property=\"og:site_name\" content=\"TYS ACCOUNTANTS\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TYSLLP\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/TYSLLP\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-26T19:37:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-26T19:38:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"tysllp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@tysllp\" \/>\n<meta name=\"twitter:site\" content=\"@tysllp\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\"},\"author\":{\"name\":\"tysllp\",\"@id\":\"https:\/\/tysllp.com\/#\/schema\/person\/6003829476ee725959a4254c25d6bb88\"},\"headline\":\"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime\",\"datePublished\":\"2025-01-26T19:37:44+00:00\",\"dateModified\":\"2025-12-26T19:38:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\"},\"wordCount\":950,\"publisher\":{\"@id\":\"https:\/\/tysllp.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp\",\"keywords\":[\"#OneBigBeautifulBillAct #TaxFreeTips #OvertimeDeduction\"],\"articleSection\":[\"Business News\",\"Tax Accounting\",\"Tax Prep\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\",\"url\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\",\"name\":\"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime\",\"isPartOf\":{\"@id\":\"https:\/\/tysllp.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp\",\"datePublished\":\"2025-01-26T19:37:44+00:00\",\"dateModified\":\"2025-12-26T19:38:40+00:00\",\"description\":\"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.\",\"breadcrumb\":{\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage\",\"url\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp\",\"contentUrl\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp\",\"width\":1200,\"height\":800,\"caption\":\"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now. #TaxFreeTips\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/tysllp.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"#OneBigBeautifulBillAct #TaxFreeTips #OvertimeDeduction\",\"item\":\"https:\/\/tysllp.com\/tag\/onebigbeautifulbillact-taxfreetips-overtimededuction\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/tysllp.com\/#website\",\"url\":\"https:\/\/tysllp.com\/\",\"name\":\"TYS LLP Accountants\",\"description\":\"Trusted Advisors and Accountants\",\"publisher\":{\"@id\":\"https:\/\/tysllp.com\/#organization\"},\"alternateName\":\"TYS Accountants\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/tysllp.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/tysllp.com\/#organization\",\"name\":\"TYS LLP\",\"url\":\"https:\/\/tysllp.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/tysllp.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2019\/05\/TYS-Favicon.png\",\"contentUrl\":\"https:\/\/tysllp.com\/wp-content\/uploads\/2019\/05\/TYS-Favicon.png\",\"width\":100,\"height\":100,\"caption\":\"TYS LLP\"},\"image\":{\"@id\":\"https:\/\/tysllp.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/TYSLLP\",\"https:\/\/x.com\/tysllp\",\"https:\/\/www.instagram.com\/tysllp\",\"https:\/\/www.linkedin.com\/company\/tysllp\",\"https:\/\/www.youtube.com\/channel\/UCiF3UP_KU4iKrDfh9Gcy3UQ\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/tysllp.com\/#\/schema\/person\/6003829476ee725959a4254c25d6bb88\",\"name\":\"tysllp\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/tysllp.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7c89607f6a9c62b8ae81393ba2f23d336309209e516a45441d227cde732a1bd8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7c89607f6a9c62b8ae81393ba2f23d336309209e516a45441d227cde732a1bd8?s=96&d=mm&r=g\",\"caption\":\"tysllp\"},\"sameAs\":[\"https:\/\/tysllp.com\/\",\"https:\/\/www.facebook.com\/TYSLLP\/\",\"https:\/\/www.instagram.com\/tysllp\/\",\"https:\/\/www.linkedin.com\/company\/tysllp\/\"],\"url\":\"https:\/\/tysllp.com\/author\/tysllp\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime","description":"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/","og_locale":"en_US","og_type":"article","og_title":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime","og_description":"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.","og_url":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/","og_site_name":"TYS ACCOUNTANTS","article_publisher":"https:\/\/www.facebook.com\/TYSLLP","article_author":"https:\/\/www.facebook.com\/TYSLLP\/","article_published_time":"2025-01-26T19:37:44+00:00","article_modified_time":"2025-12-26T19:38:40+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp","type":"image\/webp"}],"author":"tysllp","twitter_card":"summary_large_image","twitter_creator":"@tysllp","twitter_site":"@tysllp","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#article","isPartOf":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/"},"author":{"name":"tysllp","@id":"https:\/\/tysllp.com\/#\/schema\/person\/6003829476ee725959a4254c25d6bb88"},"headline":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime","datePublished":"2025-01-26T19:37:44+00:00","dateModified":"2025-12-26T19:38:40+00:00","mainEntityOfPage":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/"},"wordCount":950,"publisher":{"@id":"https:\/\/tysllp.com\/#organization"},"image":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage"},"thumbnailUrl":"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp","keywords":["#OneBigBeautifulBillAct #TaxFreeTips #OvertimeDeduction"],"articleSection":["Business News","Tax Accounting","Tax Prep"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/","url":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/","name":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime","isPartOf":{"@id":"https:\/\/tysllp.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage"},"image":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage"},"thumbnailUrl":"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp","datePublished":"2025-01-26T19:37:44+00:00","dateModified":"2025-12-26T19:38:40+00:00","description":"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now.","breadcrumb":{"@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#primaryimage","url":"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp","contentUrl":"https:\/\/tysllp.com\/wp-content\/uploads\/2025\/12\/young-happy-waitress-using-touchpad-while-working-cafe.webp","width":1200,"height":800,"caption":"The One Big Beautiful Bill Act offers tax prep relief! Deduct up to $25K in tips and $12.5K in overtime pay. Learn the best practices now. #TaxFreeTips"},{"@type":"BreadcrumbList","@id":"https:\/\/tysllp.com\/the-one-big-beautiful-bill-act-creates-tax-free-tips-overtime\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/tysllp.com\/"},{"@type":"ListItem","position":2,"name":"#OneBigBeautifulBillAct #TaxFreeTips #OvertimeDeduction","item":"https:\/\/tysllp.com\/tag\/onebigbeautifulbillact-taxfreetips-overtimededuction\/"},{"@type":"ListItem","position":3,"name":"The One Big Beautiful Bill Act Creates Tax-Free Tips &amp; Overtime"}]},{"@type":"WebSite","@id":"https:\/\/tysllp.com\/#website","url":"https:\/\/tysllp.com\/","name":"TYS LLP Accountants","description":"Trusted Advisors and Accountants","publisher":{"@id":"https:\/\/tysllp.com\/#organization"},"alternateName":"TYS Accountants","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/tysllp.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/tysllp.com\/#organization","name":"TYS LLP","url":"https:\/\/tysllp.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/tysllp.com\/#\/schema\/logo\/image\/","url":"https:\/\/tysllp.com\/wp-content\/uploads\/2019\/05\/TYS-Favicon.png","contentUrl":"https:\/\/tysllp.com\/wp-content\/uploads\/2019\/05\/TYS-Favicon.png","width":100,"height":100,"caption":"TYS LLP"},"image":{"@id":"https:\/\/tysllp.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/TYSLLP","https:\/\/x.com\/tysllp","https:\/\/www.instagram.com\/tysllp","https:\/\/www.linkedin.com\/company\/tysllp","https:\/\/www.youtube.com\/channel\/UCiF3UP_KU4iKrDfh9Gcy3UQ"]},{"@type":"Person","@id":"https:\/\/tysllp.com\/#\/schema\/person\/6003829476ee725959a4254c25d6bb88","name":"tysllp","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/tysllp.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7c89607f6a9c62b8ae81393ba2f23d336309209e516a45441d227cde732a1bd8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7c89607f6a9c62b8ae81393ba2f23d336309209e516a45441d227cde732a1bd8?s=96&d=mm&r=g","caption":"tysllp"},"sameAs":["https:\/\/tysllp.com\/","https:\/\/www.facebook.com\/TYSLLP\/","https:\/\/www.instagram.com\/tysllp\/","https:\/\/www.linkedin.com\/company\/tysllp\/"],"url":"https:\/\/tysllp.com\/author\/tysllp\/"}]}},"_links":{"self":[{"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/posts\/5568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/comments?post=5568"}],"version-history":[{"count":4,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/posts\/5568\/revisions"}],"predecessor-version":[{"id":5572,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/posts\/5568\/revisions\/5572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/media\/5567"}],"wp:attachment":[{"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/media?parent=5568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/categories?post=5568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tysllp.com\/wp-json\/wp\/v2\/tags?post=5568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}