OPINION/COLUMN
I’ve had several calls recently about a new federal law that could affect many hardworking Oklahomans, especially those in service industries who often rely on tips and overtime to make ends meet.
On July 4, when President Donald Trump signed the “Big Beautiful Bill” into law, he included provisions related to overtime pay and tips, offering relief to tipped workers, hourly employees and their families through 2028.
I want to take a moment to explain how the bill intends to help Oklahomans, though it is still a work in progress.
For starters, the law could allow many workers to deduct tips and overtime from their federal taxable income. That means a smaller federal tax bill and more money staying in your pocket. It’s important to note that this change does not apply to state or local taxes; it only affects what you owe to the federal government.
If you worked in a job where you regularly earned tips before December 2024, such as in a restaurant, barbershop, salon or delivery service, you may be eligible to deduct up to $25,000 in tip income when you file your taxes. This benefit applies to individuals making under $150,000 or married couples earning under $300,000 jointly.
For those who take on extra shifts or overtime, the law would also allow up to $12,500 in overtime pay to be deducted, or up to $25,000 on a joint return, under the same income guidelines.
From my research, I found federal economists predict the average tipped worker may see about $1,800 in tax relief each year. For workers claiming overtime, federal economists say that could be an annual savings of anywhere between $1,400 and $1,750. That might not sound like a fortune to some, but for families juggling groceries, gas and rent, it could make a real difference.
Please keep in mind that the federal government is still working through the logistics of implementing this law, and the Justice Department has until Oct. 2 to publish the official list of occupations eligible for the new deduction.
In other news, I’m excited to share that Speaker Kyle Hilbert is kicking off a new effort to bring the Capitol to communities across the state. Their first stop on the Capitol to Community Tour will be in Ada on July 28, which is just a short drive for us!
I’m looking forward to being a part of this tour and hearing directly from constituents about the concerns and ideas shaping their daily lives.
These conversations matter more to lawmakers than you all might realize. Whether it’s a local investment issue or a broader state-level initiative, government works best when it listens to the people it serves.
I look forward to hearing from you all and know that I am always praying for you and your families.
Please feel free to reach out with any questions or concerns. My email address is cynthia.roe@okhouse.gov, or you can call my office at (405) 557-7365.
Rep. Cynthia Roe, a Republican, represents House District 42 in the Oklahoma House of Representatives. Her district includes portions of Cleveland, Garvin and McClain counties.
Editor‘s note: The facts and figures in this column came from the bill itself, which can be found here: https://www. congress.gov/bill/119thcongress/ house-bill/1/text.
Other research pertaining to federal economist statistics came from an AP article titled “What to know—and what isn‘t known yet— about US tax deductions for tips and overtime pay,” which can be found here: https://apnews.com/article/ no-taxes-tips-overtimerestaurants-a8cafab342a-569080fabaa27b122b52b.
