Taxes
New Tax Law Raises Standard Deduction, Adds Breaks for Tips and Overtime Pay
via IRS
The One Big Beautiful Bill Act takes full effect for tax year 2026, lifting the standard deduction to $32,200 for married joint filers and $16,100 for single filers. New deductions covering tip income and qualifying overtime pay could further reduce taxable income for millions of hourly workers.
Why it matters
Knowing whether to claim the higher standard deduction or itemize — and whether your tips or overtime qualify for a deduction — could meaningfully lower your tax bill next spring.


