No tax on tips or overtime - Ask your mestris to run 25K Overtime and remaing as REGular

[Hitman]

The legislation gives eligible employees making up to $160,000 in 2025 an economic break (the limit will be adjusted each year for inflation). It creates new tax deductions of up to $25,000 on income made from tips, limited to cash tips, and on tips that workers report to employers for the purposes of withholding payroll taxes.

It also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services.

Bill could create changes to W-2 reporting

When it comes to overtime, the current legislation would require that employers specify on W-2 forms how much overtime an employee received during a given tax year, using a 1040 Form, with reporting starting as early as the 2025 tax year.

 

The overtime deduction would be available to eligible taxpayers, regardless of whether they itemize. However, in order to claim the deduction, one would have to provide their Social Security number on their 1040 form, or that of their spouse when joint filing.

[aratipandu]

6 minutes ago, Hitman said:

The legislation gives eligible employees making up to $160,000 in 2025 an economic break (the limit will be adjusted each year for inflation). It creates new tax deductions of up to $25,000 on income made from tips, limited to cash tips, and on tips that workers report to employers for the purposes of withholding payroll taxes.

It also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services.

Bill could create changes to W-2 reporting

When it comes to overtime, the current legislation would require that employers specify on W-2 forms how much overtime an employee received during a given tax year, using a 1040 Form, with reporting starting as early as the 2025 tax year.

 

The overtime deduction would be available to eligible taxpayers, regardless of whether they itemize. However, in order to claim the deduction, one would have to provide their Social Security number on their 1040 form, or that of their spouse when joint filing.

If consultant is making 100 per hr at 40 hrs == 4000 per week

what if mestri starts running 50 per hr at 80 hrs per week? 2k per week taxable and the other 2k free ah??

[Anta Assamey]

Healthcare industry over time is very regular and they will save some good amount...

[Hitman]

2 minutes ago, Anta Assamey said:

Healthcare industry over time is very regular and they will save some good amount...

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