Congress passed the tax cut and spending megabill with President Trump's legislative priorities which includes new tax exemptions for tipped hourly workers. But how will it work?

A full-time NJ restaurant worker earning $40,000 base salary and $20,000 in tips could deduct all of their tips. If they also pull in $10,000 in overtime during the year, they’re nearly maxing out both deductions. At a 22% tax rate, that’s potentially $7,700 in federal tax savings.