The One Big Beautiful Bill – Myth vs Fact
July 4th, 2025: President Trump has signed the One Big Beautiful Bill into Law
No Tax on Tips!
- On average, Americans will receive about $1,300 more from no tax on tips per year
- No federal income tax withheld on tipped wages means more cash in hand
- With tax-free incentives, many may be more willing to take additional shifts
- There are about 6 million workers who report tipped wages
- Industries reliant on tips: waitresses and waiters, rideshare and food delivery drivers, taxi drivers, beauticians, hair dressers.
- No tax on tips is retroactive- meaning you will get money back for your tipped wages earned in 2025!
- About 400,000 veterans work in occupations that often receive tipped wages
No Tax on Overtime!
- No federal income tax withheld on overtime means more cash in hand
- With the reduced tax burden of working overtime hours, many more workers may be willing to take additional shifts
- Over 60 percent of Americans work in occupations that are eligible for overtime pay with about 20 million workers regularly receiving overtime hours
- Industries reliant on overtime: nurses, law enforcement, first responders, etc.
- No tax on overtime is retroactive- meaning you will get money back for overtime worked in 2025!
- About 4.8 million veterans work in overtime-eligible jobs, of which about 1.4 million regularly work overtime hours
No Tax on Social Security!
- The new bonus deduction for seniors allows seniors to deduct an extra $6,000 when filing their taxes
- About 51 million seniors – 88 percent – will pay no tax on their social security income as a result of deductions exceeding taxable social security income
- The tax deduction on seniors Social Security income is retroactive- meaning you will get money back in 2025!
- About 7.7 million veterans receive Social Security
