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Guides, explainers, and state updates for tipped employees and overtime workers.
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.
Does New York Tax Your Tips and Overtime in 2026?
Your federal tax on tips and overtime dropped under the OBBBA — but New York has not conformed, and NYC residents face an extra local tax on top. Here's what that means for your paycheck.
Texas Has No State Income Tax — How Much Do You Still Save from OBBBA?
Texas has no state income tax, so there's nothing for it to "conform" to. Tip and overtime workers there keep the full federal OBBBA deduction with zero state-level offset.
Does the No Tax on Tips Deduction Reduce Your EITC or Child Tax Credit?
The tips deduction lowers your AGI, but not the W-2 earned income the EITC and Child Tax Credit actually rely on — here's how that plays out on your return.
Filing Taxes as a Gig Driver? How Uber, Lyft & DoorDash Tips Interact With the OBBBA Deduction
Driving for multiple apps? The OBBBA tips deduction is capped by your combined net self-employment income, not each platform separately — here is how that flows from 1099s to Schedule 1-A.
How Tip Pooling and Multiple Employers Affect Your No Tax on Tips Deduction
Pooled tips still count as qualified tips for the worker who receives them, and the $25,000 cap applies once per taxpayer — not once per job. Here's how to add multiple W-2s together.
Can You Claim the No Tax on Tips or Overtime Deduction if You're Married Filing Separately?
Married filing separately? OBBBA's tips and overtime deductions require a joint return by statute — here's what that means for your eligibility.