H&R Block Helps Hourly Workers Navigate New Tax Relief on Tips and Overtime Pay
New tax rules eliminate taxes on portions of income earned from tips and overtime
KANSAS CITY, Mo., March 19, 2026 (GLOBE NEWSWIRE) -- H&R Block (NYSE: HRB) tax professionals and do-it-yourself online tax solutions help clients navigate new rules that impact taxpayers who earn tips and overtime pay, making sure no one leaves money on the table. With these surprise deductions now available for the 2025 tax year, service workers across the country may be able to catch a tax break.
These two provisions of the new tax law can help keep more money in the pockets of service workers whose contributions fuel our economy.
- No Tax on Tips Earned - allows workers to deduct up to $25,000 of income earned in qualified tips.
- No Tax on Overtime Income – allows workers to deduct up to $12,500 ($25,000 for joint filers) on the premium portion of their qualified overtime pay.
To get started, taxpayers can take advantage of H&R Block’s free tax calculator for customized estimates that account for the new rule changes.
“Restaurants are the economic engine of their communities,” said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. “These tax changes have the potential to put billions of dollars back in the pockets of our hardworking employees, increasing their spending power and stimulating their local economy.”
H&R Block is uniquely qualified with online and in-person tax services to provide expert guidance and free services to ensure hourly wage earners keep as much of what they 've earned as possible. Through H&R Block’s DIY Online®,tax filers can access H&R Block’s AI Tax Assist, which delivers instant answers backed by real tax professionals around the clock.* And, prior to submitting a tax return, the Tax Pro Review service provides filers with the ability to have the return double-checked by a tax pro for missed deductions and credits with accuracy. For in-person expertise, taxpayers can visit one of 9,000 H&R Block offices to get support from a tax professional trained on the latest tax laws to ensure a maximum refund with personalized guidance.** For those who have already filed, a Second Look® review is available to ensure the accuracy of previously filed returns, regardless of how they were filed.
“The opportunity is real, but so is the complexity,” said Andy Phillips, VP of the H&R Block Tax Institute. “When tax rules change, the risk is missing savings. We’re here to help taxpayers understand their options and claim every dollar they qualify for.”
H&R Block is ready to help taxpayers navigate these changes with a range of tools and service packages designed to ensure no deduction goes unclaimed. Whether filing online or working with a tax professional, we will review specific situations to claim every dollar clients deserve. To schedule an appointment or learn more, visit www.hrblock.com or call 1-800-HRBLOCK.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. Named CNET’s Best Overall online tax service for 2026, the company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
* Expert help is included with all paid H&R Block Online products.
** All tax situations are different. Not everyone gets a refund. See hrblock.com/guarantees for complete details.
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