New Tax Changes Just Passed — What This Could Mean for You or Your Business
- Shelley Morales
- Jul 4
- 2 min read
The One Big Beautiful Bill has just passed the House and will be signed by the president today, July 4th.
It includes two significant changes that could potentially increase your income starting next year if you receive tips or work overtime:
1️⃣ Tips will no longer be taxed — up to $25,000 annually for individuals and up to $50,000 annually for joint filers. If you work in a job where you regularly earn tips (such as servers, barbers, or salon workers), the cash and card tips you report will no longer be considered taxable income. This means more of your earnings will remain in your paycheck.
2️⃣ Overtime pay will also be tax-free — up to $12,500 annually or up to $25,000 for those filing jointly. This change could potentially save some workers around $2,000, depending on the amount of overtime they work.
Please note that these tax breaks will start with your 2025 federal income taxes. However, you will still be responsible for paying Social Security, Medicare, and state taxes (if applicable).
You’ll also see tax credits & other savings if you have an auto loan, have children, are a Senior, or own a business:
✅ Auto loan interest payments can be deducted up to $10,000 as long as the car is made in the U.S.
✅ The child tax credit is boosted to $2,200 from $2,000 per child.
✅ Seniors get an additional deduction of up to $6,000 on top of the standard deduction.
✅ A 20-percent deduction for pass-through business income — a designation that includes LLCs, partnerships, sole proprietorships and S-corporations.
🇺🇸🎆Happy Independence Day & have a safe weekend! We’ll be back in the office July 10th. In the meantime, stay tuned for more information as details unfold.
Shelley H. Morales is your Hometown Accountant! Give me a call today to find out how you can leave the books to me & have more of your time free! 352-358-1413 info@hometownaccountant.com www.hometownaccountant.com/book-online/
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