Note: Now that the No Tax on Tips measure has been signed into law, the new tax deduction for cash tips takes effect for the 2025 tax year. That means eligible workers could claim the deduction when they file their taxes in early 2026 for income earned in 2025. Despite the excitement over this change, there are some things the OBBBA doesn’t cover.

The bill must be reconciled between the two houses of Congress before passing to the President. You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. The U.S. Senate narrowly passed its version of President Donald Trump’s One Big Beautiful Bill on Tuesday,