Updated W-2 Tax Form: Tax Deductions on Qualified Tips and a Portion of Overtime Pay

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UPDATE TO LAKE EFFECT’S AUGUST 27, 2025 BLOG ON THIS TOPIC In July 2025, the Trump Administration’s signature budget bill became law as Public Law 119-21.  Of note for employers and employees, the bill permits tax deductions for “qualified tips” and a portion of overtime pay, as detailed in this IRS Fact Sheet.  In August, […]