For a worker making $40,000 or less, standard deductions often already wipe out federal tax obligations. But for someone in the $50,000 to $100,000 range, shielding $12,500 in overtime or $25,000 in tips could move them into a lower tax bracket.

President Donald Trump got his wish, signing the much-debated "Big, Beautiful Bill" on July 4. The spending bill passed the House of Representatives on July 3 by a vote of 218-214.

The One Big Beautiful Bill Act extends Trump's expiring tax cuts and adds new deductions for middle-class Americans, including relief for tipped workers, overtime pay and retirees.