The One Big Beautiful Bill introduces a unique opportunity for workers in certain industries between 2025 and 2028:
- No federal income tax on tips and overtime, up to $25,000 per year
- Available if you earn under $150,000 (with phase-outs above that)
- Applies to a wide list of occupations: servers, bartenders, nail techs, and many others (over 60 in total)
- Treated as an above-the-line deduction, but remember, you still have to report the income to claim it
This could mean real tax relief for service industry workers, but it’s a short window.
Planning ahead with your CPA can help you make the most of it. This is for informational purposes only and not tax advice.
Watch the video for the full breakdown and see if this applies to you.
