Blog
Guides, explainers, and state updates for tipped employees and overtime workers.
Does New Jersey Tax Your Tips and Overtime in 2026?
New Jersey’s Gross Income Tax is calculated independently of federal AGI, so the OBBBA’s tips and overtime deductions don’t flow through automatically. Both remain fully taxable on your NJ return in 2026.
Does Georgia Tax Your Tips and Overtime in 2026? The State’s Own $1,750 Tax Break
Georgia didn’t adopt the federal OBBBA tips and overtime deductions — instead HB 463 created its own, smaller break: up to $1,750 a year each of tips and overtime pay exempt from Georgia income tax through 2028.
Is Car Loan Interest Tax Deductible in 2026? The OBBBA Auto Loan Interest Deduction Explained
The OBBBA lets you deduct up to $10,000 a year in interest on a new car loan — but only for U.S.-assembled personal vehicles financed after 2024, and it phases out above $100,000 of income. Here’s exactly who qualifies.
OBBBA SALT Cap Increase: What the New $40,000 Deduction Limit Means for You
The OBBBA raised the SALT deduction cap from $10,000 to $40,000 for itemizers — but it phases back down to $10,000 once your income passes $500,000, and only benefits taxpayers who itemize. Here’s how the new limit actually works.
OBBBA Senior Deduction: How the New $6,000 Tax Break for Age 65+ Works
The OBBBA adds a new $6,000 federal deduction for taxpayers 65 and older ($12,000 per couple) — separate from the existing extra standard deduction for seniors. Here's who qualifies, how the phase-out works, and how to claim it.
Does Pennsylvania Tax Your Tips and Overtime in 2026?
Pennsylvania hasn't adopted the OBBBA's tips or overtime deductions, so both stay taxable at the state's flat 3.07% rate — plus a local Earned Income Tax of 1% to 3.75% in most municipalities.
Does Colorado Tax Your Tips and Overtime in 2026?
Colorado conforms to the OBBBA's tips deduction automatically but voted to decouple from the overtime deduction — so tips stay tax-free at the state level while overtime gets taxed at 4.4%.
Salaried and Exempt From Overtime? Why You May Not Qualify for No Tax on Overtime
The no-tax-on-overtime deduction only applies to FLSA-required overtime pay. If you're classified as FLSA-exempt, you don't legally receive overtime — so there's nothing to deduct, no matter how many hours you work.
Do Venmo, Zelle, and Credit Card Tips Qualify for No Tax on Tips?
Tips sent through Venmo, Cash App, PayPal, or Zelle qualify as cash tips under the final OBBBA regulations, as long as they're paid in U.S. dollars and voluntary. Cryptocurrency tips don't qualify.
Does the No Tax on Tips or Overtime Deduction Affect the AMT?
Neither the tips nor overtime deduction appears on the IRS Form 6251 addback list, which means both currently reduce your Alternative Minimum Taxable Income the same way they reduce regular taxable income.
What Records You Need to Prove Tip Income for the OBBBA Deduction
OBBBA's tip deduction gives you a real reason to keep clean records — what the IRS already requires, what changes on your 2026 W-2, and how long to keep it all.
OBBBA W-2 Reporting for Employers: What Changes for Tips & Overtime Boxes
OBBBA adds new Form W-2 reporting duties for employers with tipped or overtime-eligible workers — new Box 12 codes arrive for 2026, but 2025 comes with IRS penalty relief. Here's what payroll needs to track now.