Anthony Du EA, Tax Advisor Services

Does Oklahoma tax overtime pay and tips under OBBBA?

Yes, Oklahoma still taxes overtime pay and tips as part of its state income tax, as the federal deductions provided by the One Big Beautiful Bill Act (OBBBA) only apply to federal income tax liability, not state or payroll taxes.

OBBBA Impact on Federal vs. State Taxes
The OBBBA, signed into law on July 4, 2025, introduced temporary federal deductions for qualified tips and overtime pay for tax years 2025 through 2028.

• Federal Income Tax: Eligible workers can deduct up to $25,000 in qualified tips and up to $12,500 in the premium portion of overtime pay ($25,000 for joint filers) from their federal taxable income.

• Oklahoma State Income Tax: Oklahoma has not adopted a specific exemption related to the OBBBA provisions. Therefore, for Oklahoma state income tax purposes, both overtime pay and tips are considered taxable income and must be reported as usual.

• Payroll Taxes: The OBBBA deductions do not affect federal payroll taxes (Social Security and Medicare), which still apply to the full amount of all wages, tips, and overtime pay.

The Income Tax Office of
Anthony Du, EA, and Dien Truong, EA
Enrolled Agent. Trusted Name. Your taxes. Our expertise.

To schedule a meeting.
Please visit our website at https://tonyduea.com.

IRS Individual e-File Start Date
The Internal Revenue Service (IRS) has announced in IR-2026-02 that it will begin accepting and processing 2025 individual tax returns on January 26, 2026. The IRS Prepare to File in 2026 page provides tips, key dates, and other details about the filing season.

The IRS will begin accepting business returns on January 13, 2026, at 9 a.m. (ET).
• The IRS will begin accepting 1041, 1120-H, and 709 returns on January 18, 2026.
• The 2026 Individual filing season deadline is April 15, 2026.

Additional resources:

Get ready to file your taxes | Internal Revenue Service Get ready to file your taxes. See tips that can make filing taxes easier next year. Learn about tax law changes, how to view your tax account information online, and ways to get help.

2025 Individual Tax Highlights With the passing of the One Big Beautiful Bill Acct (OBBBA) in July, the die is cast for key 2025 tax legislation. Here is what you need to know.

The One Big Beautiful Bill Act (OBBBA) will impact most businesses. Here is what you need to know.

One Big Beautiful Bill Act: Business Highlights

Dear Valued Client and Friend,

As the holiday season arrives, we wish you and your family joy, peace, and love. This time of the year invites us to pause, take a few deep breaths, and reflect on the many blessings in our lives
before stepping into the New Year. It is also time to evaluate key areas, including tax planning and financial goals.

With the new administration taking office in January 2025, significant tax legislation has been enacted—most notably the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025. These changes bring meaningful opportunities for thoughtful planning in the year ahead.

As we welcome the New Year, we are also delighted to introduce Dien Truong (DT), an Enrolled Agent who joined our firm in late 2023. Dien volunteered with the IRS’s VITA (Volunteer Income Tax Assistance program in Yukon, Oklahoma, during the 2022 tax season, which came highly recommended by a respected former IRS employee. She holds a Doctor of Pharmacy degree from the University of Oklahoma Health Sciences Center and has been a Registered Pharmacist since 2009. Driven by a desire to broaden her expertise and embrace new challenges, Dien (DT) expanded her professional focus to include tax and financial planning. Please feel free to reach out to her with any questions—whether they're about simple medication or a tax matter.

As always, it is our pleasure to assist with your income tax preparation, and we look forward to visiting with you at your appointment. We take great pride in our firm’s reputation for delivering service that consistently exceeds expectations. Most importantly, we deeply appreciate your business, your trust, and your continued referrals.

Sincerely,

Tony Du, EA Dien Truong, EA

"Google link" to the TaxUpdate- December 2025

Tax Update_1040Inv and OBBBADec2025.pdf

Happy Thanksgiving 🦃
From all of us at Anthony Du, EA, we are deeply thankful for your continued support and trust in us. Wishing you and your loved ones a wonderful holiday filled with joy and peace.

Thank you to all those who have proudly served our country in uniform, and the families who have served alongside them.

What a great day with a nice compliment from a client!
I am absolutely thrilled to read her review, who had a great experience, which is so special. Thank you for taking the time to share your feedback and for your support.

Your 2024 Tax Return Deadline is Approaching!.

This is a friendly and final reminder that the filing deadline for the 2024 Individual 1040 Income Tax Return is October 15, 2025, for extended filers.

Please submit all outstanding documents to our office by September 20, 2025. This will ensure we have enough time to complete your return before the deadline.

Tip income earners should track their tip income diligently!

Recent federal tax changes under the One Big Beautiful Bill Act (OBBBA) allow a deduction for certain tips; workers must continue to track their tip income diligently. The "no tax on tips" provision, which is temporary from 2025 to 2028, provides a federal income tax deduction, but it does not eliminate the requirement to report tip income or pay payroll taxes on it.

Diligent tracking of tips is shown by consistent, detailed daily record-keeping and timely reporting to their employer. This process provides a clear, documented paper trail of all cash and non-cash tips received.

A diligent-tipped employee will consistently maintain a detailed daily log using one of the following methods:

• A personal tip diary or notebook: This is a physical record kept by the employee.

• Digital tracking tools: This could be a spreadsheet or a tip-tracking app.

• Employer-provided electronic system: If the employer offers one, the employee will use it and keep a paper copy for their records.
• IRS Form 4070A: A record book provided by the IRS for tracking tips.

Regardless of the method, the daily log will record the following information for each workday:
• Date
• Cash tips received directly from customers and any tips received from other employees in a tip pool.
• Credit and debit card tips distributed by the employer.
• Non-cash tips, such as tickets or passes, along with their value. These are not reported to the employer but are included in the employee's tax return.
• Any tips paid out to other employees through tip-splitting or pooling.

Individual Income Tax Cuts -
the One Big Beautiful Bill Act (OBBBA), a sweeping tax and spending package signed into law in July 2025. It extends and modifies the Tax Cuts and Jobs Act (TCJA) from 2017, focusing on individual income tax cuts and other provisions.

Key individual income tax provisions

* Permanent lower individual tax rates: Maintains the reduced rates introduced in 2017 across all federal income tax brackets.

* Increased standard deduction: The amount most taxpayers subtract from their taxable income is boosted to $15,750 for single filers and $31,500 for married filers (in 2025), and is now permanent.

* Expanded Child Tax Credit (CTC): Increased to $2,200 per child starting in 2025 and indexed for inflation, this is a key factor in reducing the effective tax rate for families at lower income levels.

* Temporary deductions: The bill includes temporary deductions for:

* Tips and overtime pay: Deductions are allowed for qualified tip income (up to $25,000) and overtime pay (up to $12,500) for eligible workers, phased out at higher income levels. These are effective from 2025 through 2028.

* Senior Deduction: An additional $6,000 deduction is available for individuals aged 65 and older, with phase-outs based on income. This is also a temporary deduction from 2025 through 2028.

* Car Loan Interest: Individuals can deduct up to $10,000 of interest paid on loans for new, American-made vehicles, subject to income limits. This applies from 2025 to 2028.

* Changes to State and Local Tax (SALT) deduction: The cap on deducting state and local taxes is temporarily increased to $40,000 for 2025 through 2029, with a gradual phase-out at higher income levels, reverting to $10,000 in 2030.

* Individual Alternative Minimum Tax (AMT): The bill retains the increased exemption amounts for the AMT introduced by the TCJA.

In essence, the "One Big Beautiful Bill" represents a major legislative package aimed at providing substantial individual income tax cuts and other provisions, with both permanent and temporary changes impacting a wide range of taxpayers across various income levels and geographic regions.