Blog
Guides, explainers, and state updates for tipped employees and overtime workers.
Started or Left a Tipped/Overtime Job Mid-Year? How the OBBBA Deduction Works
If you worked a tipped or overtime job for only part of the year, the $25,000 tips cap, the $12,500/$25,000 overtime caps, and the MAGI phase-out are still full-year figures — none of them get prorated by how many months you worked.
Does Illinois Tax Tips & Overtime? OBBBA Conformity Guide
Illinois hasn't adopted the OBBBA's tips or overtime tax breaks, so both stay fully taxable on your state return — but because Illinois has a flat 4.95% rate, the extra tax hits every income level the same way.
When Does No Tax on Tips End? The 2025-2028 OBBBA Sunset Explained
No tax on tips and overtime is not permanent. Both OBBBA deductions run for tax years 2025 through 2028 and are scheduled to expire after that unless Congress extends them. Here is the timeline.
Does California Tax Your Tips and Overtime in 2026?
Your federal tax on tips and overtime dropped under the OBBBA — but California has not conformed. The state still taxes both as ordinary income in 2026. Here is what that means for your paycheck.
Does Double-Time, Holiday, or Weekend Pay Count for No Tax on Overtime?
Not all "extra" pay is deductible overtime. The OBBBA only covers the FLSA-required half of time-and-a-half — so double-time, holiday, and weekend premiums usually do not count. Here is why.
How to Claim No Tax on Tips and Overtime on Your 2025 Tax Return (Schedule 1-A)
The OBBBA tips and overtime deductions are claimed at tax time on the new IRS Schedule 1-A — not automatically in your paycheck. Here is how the form works and the filing rules that trip people up.
Self-Employed and Earning Tips? How to Claim No Tax on Tips and Cut Your Quarterly Taxes
Gig and self-employed tipped workers can deduct up to $25,000 in tips under the OBBBA — but not their self-employment tax. How to qualify, the net-income limit, and lowering your quarterly payments.
Is 'No Tax on Tips' Really Tax-Free? What Still Comes Out of Your Tips in 2026
'No Tax on Tips' is a federal income tax deduction — not a full exemption. FICA and many state taxes still apply. Here's what really comes out of your tips.
Which Jobs Qualify for No Tax on Tips? The IRS Occupation List for 2026
The IRS finalized an exhaustive list of 70+ tipped occupations eligible for the OBBBA deduction. See if your job qualifies and what counts as a qualified tip.
How to Calculate Your No Tax on Overtime Deduction (Only the Premium Counts)
Only the 'half' premium of time-and-a-half qualifies for the OBBBA overtime deduction — not your full overtime pay. Here's the math with 2026 examples.
OBBBA Income Limits: How the Tips and Overtime Deductions Phase Out Above $150K
The OBBBA tips and overtime deductions shrink $100 for every $1,000 of MAGI over $150,000 ($300,000 joint). See exactly where each deduction hits zero.
Will Your State Still Tax Your Tips and Overtime in 2026?
'No tax on tips and overtime' is federal only. Whether your state follows depends on conformity — and many states still tax both. Find your state's status.