Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks.

IRS gives some very specific examples in guidance issued Nov. 21 on how tax breaks for overtime pay and tips could work for some specific jobs and situations.

Employees might want to start as soon as possible trying to dig up 2025 pay stubs and records for claiming 'no tax on tips' and 'no tax on overtime.'

Brand new rules for tax breaks on overtime and tip income are bound to drive taxpayers bonkers when trying to file their 2025 federal income tax returns next year.

Expect to face far more work and confusion when trying to figure out what income can — and cannot — be deducted for qualifying tips or overtime pay on 2025 federal i

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