As part of the One, Big, Beautiful Bill Act, taxpayers are entitled to a tax deduction on “qualified overtime” and “qualified tips” received during tax years 2025 through 2028. The following is a summary of the new rules as well as guidance on the application of transition relief for the 2025 tax year. Summary of Terms Effective Tax Years:The tax relief applies to overtime and tip income earned from January 1, 2025, through December 31, 2028.