👉 No Tax on Overtime (up to $12,500)
If you earn extra income from overtime, you may be able to deduct the amount of overtime compensation received during the taxable year, up to $12,500.
👉 No Tax on Tips (up to $25,000)
For the first time ever, tip income can be tax-free—up to $25,000 if you’re Married Filing Jointly, or $12,500 otherwise. Not everyone qualifies (your job must be on the IRS “tipped occupations” list), but if you or someone in your family works in hospitality, this could be a really nice tax break.
No tax on overtime and tips is subject to IRS reporting rules and limitations; effective for taxable years beginning after Dec. 31, 2024.
Easy Tax Service in Prescott Valley can help if you have any questions about no tax on overtime and tips. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation service at a price you can afford. Please give us a call at 928-775-7000 to schedule an appointment today.