Now that President Donald Trumps signed the bill, workers will be able to deduct up to $25,000 in reported tips and $12,500 in overtime pay from their taxable income on their federal tax returns. This means you won’t see an immediate boost in your take-home pay — taxes will still come out of your paycheck — but when you file for 2025 early next year,

How does no tax on overtime work? Under the new law, workers can deduct up to $12,500 in overtime pay and $25,000 in reported tips from their taxable income on federal tax returns