If you’re banking on tax-free overtime to boost your paycheck, you’re out of luck. Trump’s “big beautiful bill” doesn’t change what you’re paid; it changes what you’re taxed. That happens at tax time, not on payday. Employers will keep withholding taxes as usual, and it’s up to you to apply the deduction — if you qualify — when you file.

Trump’s new megabill creates temporary deductions for federally taxable tips and qualified overtime pay, but there are some caveats.

President Donald Trump got his wish, signing the much-debated "Big, Beautiful Bill" on July 4. The spending bill passed the House of Representatives on July 3 by a vote of 218-214.