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The “No Tax on Tips” provision, passed and signed into law on July 4 as part of President Donald Trump’s One Big Beautiful Bill Act, allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes. There is a catch: It’s only a temporary provision, expiring in 2028 when Trump leaves office at the end of his second term. But the good news is that eligible workers can start deducting up to $25,000 of reported tip income for their upcoming 2025 tax year. Here’s what else to know. How ‘No Tax on Tips’ affects tax filing and paychecks This is a deduction, not an exemption, which means tipped workers will still need to report their tips when filing their taxes, instead of having the tips automatically taken out of taxable income, per Kiplinger. The No Tax on Tips provision also does not eliminate payroll taxes (like Social Security and Medicare) on tips, so you’ll still need to pay those. Who qualifies for ‘No Tax on Tips’? The No Tax on Tips deduction applies for those earning income up to $150,000 a year, or $300,000 for joint filers, which will be adjusted each year for inflation. Furthermore, it applies for “customarily tipped” workers. The U.S. Treasury Department and Internal Revenue Service (IRS) have yet to issue guidance on which jobs and occupations qualify, so stay tuned. However, the bill is likely to apply to workers that rely on tips, such as hair stylists, nail techs, restaurant servers, and bartenders, per Kiplinger. As Fast Company previously reported, No Tax on Tips also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services, just like for restaurants. No tax on overtime pay Finally, the No Tax on Tips provision also applies to overtime pay, and a deduction will be available to eligible taxpayers regardless of whether they itemize. However, filers will have to provide their Social Security number on their 1040 form (or that of their spouse when filing jointly) in order to claim the deduction.
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E-Commerce
To say Americans are grappling with economic uncertainty is an understatement. From boomerang tariff policies to the high cost of living, inflation, and mass layoffs, many people are increasingly worried about the economy and their ability to stay afloat. One way that’s affecting Americans? Their budgeting habitswith many now engaging in what’s called “vibe-based budgeting,” according to a report from Intuit Credit Karma. Here’s what to know. What is vibe-based budgeting? New data from Intuit Credit Karma showed that 44% of Americans have engaged in vibe-based budgetingadjusting their spending and financial habits based on “how the economy feels,” even if their personal financial situation hasnt actually changed. Over half of younger Americans admitted to budgeting this way (56% of Gen Zers and 57% of millennials). That mindset is tied directly to recent news about the economy, both on and off social media, according to Intuit Credit Karma. The data showed many Americans believe that prices are climbing rapidly (44%), their finances are unstable (34%), and a recession is just around the corner (28%)with 61% reporting they are more anxious about the economy now than they were a year ago. A bleak picture but a better reality In contrast to that bleak economic picture, when survey respondents were asked to drill down on their own finances, half (51%) reported having a positive monthly cash flow, and nearly three-quarters (72%) replied their cash flow has actually improved or stayed the same over the past six months. However, 48% said that media coverage and changing economic conditions have made them second-guess their financial standing. In short, the findings show a gap between how those surveyed feel about the state of the economy and the future, versus how they are actually doing financially. It also showed that their anxiety over the economy is making them more deliberate about how they manage their money, with 45% of those concerned about the economy reporting they have cut back on nonessential spending such as eating out, and 38% avoiding new debt or loans. The good news is that those who have adjusted their budget have a more optimistic outlook: 38% said they expect their financial situation to improve in the coming year. The Intuit Credit Karma findings are based on data from a Qualtrics online survey that ran last month from June 13 to June 17, among 1,058 adults ages 18 and older.
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E-Commerce
A software engineer became Xs main character last week after being outed as a serial moonlighter at multiple Silicon Valley startups. PSA: theres a guy named Soham Parekh (in India) who works at 34 startups at the same time, wrote Suhail Doshi, the founder of AI design company Playground, on X on Tuesday. Hes been preying on YC companies and more. Beware. PSA: theres a guy named Soham Parekh (in India) who works at 3-4 startups at the same time. Hes been preying on YC companies and more. Beware.I fired this guy in his first week and told him to stop lying / scamming people. He hasnt stopped a year later. No more excuses.— Suhail (@Suhail) July 2, 2025 In the comments, founders of other Silicon Valley companies shared similar stories of interviewing, hiring, and often firing the engineer. LMFAOOO. I INTERVIEWED THIS GUY YESTERDAY. BRO, IM DYINGG, Cluely CEO Roy Lee posted on X. Digger CEO Igor Zalutski said his company nearly hired him, adding he seemed so sharp and no-bs during the interviews. LMFAOOO I INTERVIEWED THIS GUY YESTERDAY BRO IM DYINGG— Roy (@im_roy_lee) July 2, 2025 Following the revelation, a database named SohamTracker sprang up, revealing that Parekh has held at least 19 jobs since 2021at least five of which he started in just the last two months. This is pretty hilarious actually. lmao. could be a skit on silicon valley, one X user wrote. The /r/overemployed king, another added. On Thursday, Parekh appeared on the podcast TBPN to address the accusations. He admitted he was driven to juggle multiple jobs due to dire financial circumstances. He added: I just thought that if I worked multiple places, I can basically help myself alleviate the situation I was in much faster. Parekh claimed to have been working 140-hour weeksroughly 20 hours a daywith many of the roles requiring in-person attendance. Unsurprisingly, he noted that he’s known among friends for not sleeping. While the hustle might be admirable to some, Parekh is hardly alone in embracing Silicon Valleys so-called grindset mentality. The subreddit r/overemployed currently hosts nearly half a million members, where users trade stories about secretly holding down multiple remote jobs. We roast Soham Parekh, but remember your companys making you do five peoples jobs on one persons salary, one X user pointed out. We roast Soham Parekh, but remember your companys making you do five peoples jobs on one persons salary.— Devaiah Bopanna (@devaiahPB) July 5, 2025 Ironically, Parekhs exposure has ended up working in his favorhe landed a new job at Darwin, an AI video remixing startup. Still, his actions may have consequences for others in similar situations. After the Soham saga, pretty sure very few YC startups will hire remote Indians, wrote Varunram Ganesh, head of growth at payroll platform Warp, on X. Classic case of one guy exploiting a high-trust society, which leads to downfall of all the others around him. After the Soham saga, pretty sure very few YC startups will hire remote Indians. Classic case of one guy exploiting a high trust society which leads to downfall of all the others around him.— Varunram Ganesh (@varunramg) July 2, 2025 But everyone’s favorite founding engineer insists he meant no harm. I dont really care much about the money, he told TBPN. I was really into it for building.
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E-Commerce
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