The IRS has issued guidance on new tax deductions for tips and overtime, part of President Trump's 'One Big Beautiful Bill Act' for the 2025 tax year. Eligible workers can deduct qualified tips up to $25,000 annually, with the benefit phasing out for higher earners. Overtime pay will also be excluded from taxable income. The IRS is updating tax forms to facilitate these claims, with tax season typically beginning in late January.