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Big news for American workers just dropped. Under the fresh tax rules rolled out this year, employees can now write off up to $25,000 in tips—yes, you read that right. And there's more: overtime pay deductions just got a serious boost, clocking in at over $12,000.
This comes courtesy of the "One Big Beautiful Bill Act" that got the presidential signature earlier in 2025. For anyone grinding those extra hours or relying on tip income, this could mean real money back in your pocket come tax season. The policy shift marks one of the more worker-friendly tax adjustments we've seen in a while, potentially putting thousands back into circulation across service and hourly wage sectors.