July 21,2025

The One Big Beautiful Bill Cuts Taxes for Workers

Washington, D.C.--The One Big Beautiful Bill Act invests in workers, delivering on President Trump’s promises to end tax on tips and overtime for millions of hardworking Americans. It also lessens the administrative burden on gig workers and small businesses.

“This legislation enables the tipped and hourly workers who keep our economy running to keep more of each hard-earned paychecks,” said Finance Committee Chairman Mike Crapo (R-Idaho).

Key wins:

  • No tax on tips for millions of tipped workers.
  • No tax on overtime for millions of America’s hourly workers.
  • Repeals the Democrats’ onerous IRS reporting requirements on gig workers.
  • Increases the 1099-MISC threshold, reducing the paperwork burden for small businesses and workers.

 

What they are saying:

 

“Furthermore, we greatly appreciate the Senate’s inclusion of other AICPA priorities in its bill, particularly: repealing the American Rescue Plan Act’s lowered threshold for Form 1099-K to $600 for an unlimited number of transactions; and increasing the filing threshold for Forms 1099-NEC and Forms 1099-MISC from $600 to $2,000, adjusted for inflation.” - AICPA

 

“The Coalition for 1099-K Fairness strongly supports the Senate Finance package’s inclusion of language to raise the 1099-K reporting threshold. This commonsense provision would increase the threshold to over $20,000 in total payments and more than 200 transactions per calendar year—effectively stopping the implementation of a burdensome $600 threshold, regardless of transaction count, scheduled to take effect in 2026 under the American Rescue Plan Act (ARP).” - Coalition for 1099K Fairness