The sweeping and controversial One Big Beautiful Bill Act (OBBBA) fulfills many of Donald J. Trump's 2024 campaign promises: it makes his first-term tax cuts permanent, includes a handful of family-friendly tax breaks, and introduces relief for tipped and overtime pay.

Now that President Donald Trump signed the bill, workers will be able to deduct up to $25,000 in reported tips and $12,500 in overtime pay from their taxable income on their federal tax returns. This means you won’t see an immediate boost in your take-home pay — taxes will still come out of your paycheck — but when you file for 2025 early next year,