Unpacking the New Tax Breaks for Tips and Overtime: Who Really Benefits?

Millions of hardworking Americans who rely on tips and overtime pay may breathe a little easier come tax season 2025, thanks to a new federal deduction included in President Donald Trump’s recent spending bill. But as the government scrambles to define key details, taxpayers deserve clarity—and accountability—on what this means for their wallets and our nation’s fiscal health. Is This Tax Break a True Win for Workers or a Costly Loophole? The legislation mandates that eligible workers, including more than two million restaurant servers and bartenders—and likely barbers, hairdressers, nail technicians, and delivery drivers—can deduct up to $25,000 in tips...