Blog
Guides, explainers, and state updates for tipped employees and overtime workers.
Multiple Jobs and No Tax on Overtime: How to Handle More Than One W-2
Workers with multiple jobs can determine qualified 2025 overtime using the facts and records from each employer, but the statutory overtime cap applies per return—not per W-2.
Does Ohio Tax Your Tips and Overtime in 2026?
Ohio's income tax starts from federal AGI, but the OBBBA tips and overtime deductions never touch AGI — so both stay fully taxable in Ohio on top of the state's new 2.75% flat rate. Two bills would fix that; neither has passed.
Does Virginia Tax Your Tips and Overtime in 2026?
Virginia just replaced decades of automatic IRC conformity with a fixed date — but Tax Bulletin 26-1 makes clear that change doesn't reach the OBBBA's tips or overtime deductions. Both stay fully taxable in Virginia.
Can You Claim the Standard Deduction AND No Tax on Tips or Overtime?
Yes — the OBBBA's tips and overtime deductions are claimed on the new Schedule 1-A and stack on top of whichever deduction method you already use, standard or itemized. Here's exactly how the math works, per the IRS's own instructions.
Does the No Tax on Tips or Overtime Deduction Lower Your MAGI? What That Means for ACA Subsidies and Roth IRAs
The OBBBA tips and overtime deductions lower your taxable income, but not your AGI or MAGI. That means they can't help you qualify for a bigger ACA marketplace subsidy or get you under the Roth IRA income limit. Here's the exact mechanism.
Will Adjusting Your W-4 for OBBBA Cause an Underpayment Penalty?
Lowering your W-4 withholding to reflect the OBBBA tips and overtime deduction is safe as long as you still meet an IRS underpayment safe harbor. Here's exactly how those safe harbors work, and how to check yours before you adjust.
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.