How "No Taxes" on Tips, Overtime, and Social Security Works

Context

Kelly Phillips Erb from Forbes gives an explanation of how the One, Big, Beautiful Bill will implement its "no taxes on tips, overtime, and Social Security" provisions. Workers will be taxed on qualified tips and overtime throughout the year, but will be able to take a deduction when they file. Workers are still required to pay their portion of payroll taxes (FICA). Although relatively few Social Security recipients pay taxes on their benefits, a deduction is available for those whose "combined income exceeds the base amount for [their] filing status." Forbes does not score high on factual reporting, but this source does a good job of providing context.

See also: Very Few Workers Will Actually Benefit from "No Tax on Tips"

Tertiary Source
Source Title: No Taxes On Tips, Overtime, And Social Security? Not Exactly
Source Category: Commentary
Source Format: Blog Article
Author(s): Kelly Phillips Erb
Publication Title: Forbes
Publication Date: May 15, 2025
Accessed: 2025-07-09
Bias & Credibility Report
View Source

A Better Way to Engage with the Issues

Better Discourse is a place to find thoughtful, in-depth reflections on political, cultural, and theological topics, where contributors are committed to engaging constructively with opposing viewpoints. The platform emphasizes respectful, sustained dialogue and models virtues like patience, openness, and intellectual courage in tackling difficult topics.

Better Articles

Check out essays and opinion pieces championing thoughtful dialogue, not shouting matches.

Explore

Better Sources

Engage with high-quality annotated sources on various topics. Become a contributor and add your voice.

Explore

Better Book Reviews

Discover books that challenge assumptions, deepen empathy, and promote meaningful conversations.

Explore

Better Tools

Try out research tools designed to help you dig deeper, think sharper, and speak with integrity.

Explore