12/14/2025
📣 NEW TAX LAW ALERT BREAKDOWN (2025–2028)
No Taxes on Tips & Overtime. Here’s What It REALLY Means: It DOES NOT mean your W-2 will show $0.00; it means you get a SPECIAL TAX DEDUCTION when you file.
Let’s break it down:
TIPS HOW IT WORKS NOW
Tips still show on the W-2
Nothing changes on the W-2.
Your employer still reports your tips.
They still take payroll taxes out.
✔ The NEW part is You can deduct up to $25,000 in tips from your taxable income.
✔️Tip earners may get back the federal income tax withheld from tips, but payroll taxes (Social Security & Medicare) are not refunded.
📌 Example: You made:
• $40,000 regular pay
• $15,000 tips
Total W-2 wages = $55,000
But when you file taxes:
• You subtract up to $25,000 in tips
So the IRS taxes you like you made:
$30,000 instead of $55,000.
Your refund goes UP or amount owed goes DOWN.
For tax year 2025, the IRS will add NEW lines on the 1040 form:
• Tip Deduction
• Overtime Deduction
Y’all, don’t get confused…
Your W-2 is NOT changing.
Your job will STILL show your full wages, tips, AND overtime like normal.
Your check stays the same.
Your W-2 stays the same.
But your refund gets BIGGER because your taxable income goes DOWN.
🔥 This starts for Tax Year 2025 (filed in 2026).
I’ll be ready to help everybody get ALL their deductions correctly.
If you need help understanding how this applies to YOU, DM or head over to [email protected]