New Tax Rules: Overtime & Tips

New tax rules for overtime and tip income in 2025 are expected to cause confusion, as the actual rules are complex and many people lack necessary paperwork. The Treasury and IRS released guidance, but it didnt cover every situation. Employers arent required to provide detailed breakdowns, adding to the challenge. Taxpayers must gather pay stubs and keep logs of overtime hours and tip income. These deductions, part of the One Big Beautiful Bill Act, are retroactive to January 1, 2025, but have maximum limits and phase out for higher-income earners. Thorough record-keeping is crucial to claim correct deductions and avoid IRS issues.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.