CINCINNATI — When President Trump visited the Greater Cincinnati area Wednesday, one topic came up repeatedly: affordability.
During his speech to supporters at Verst Logistics contract packaging facility in Hebron, Trump specifically touted the no tax on tips and no tax on overtime provisions.
"No tax on tips," Trump said during the speech. "No tax on overtime, which affects 800,000 Kentucky seniors. And, every Democrat voted against it."
The Kentucky Democratic Party (KDP) responded to President Trump's remarks in a statement on Thursday.
“President Trump’s Big Ugly Bill is going to kick over 200,000 Kentuckians off of their health care and put over 20,000 health care workers out of a job. It threatens the closure of 35 rural hospitals, all while giving massive tax giveaways to the wealthiest Americans," Nat Turner, KDP communications director, said. "It is devastating for our state, and especially for our rural communities.”
Both provisions came out of the One, Big, Beautiful Bill Act, passed in 2025. Here's a refresher on what they do.
WATCH: In Hebron, Trump spoke extensively about affordability and new tax provisions
No Tax on Tips
Tipped workers are still taxed on tips they receive, but could get some of that money back during tax season.
If you received qualified tips in 2025, you may be able to deduct up to $25,000 of those tips. The deduction phases out if your modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). To be eligible, you or your spouse who received the tips must have a valid Social Security number (SSN). Married filers must file a joint return to qualify.
According to Fidelity Investments, nearly 70 types of jobs across eight service industry sectors are eligible for the deduction, including:
- Beverage and food service (i.e., bartenders, servers, baristas)
- Entertainment and events (i.e., casino dealers, coat checkers)
- Hospitality and guest services (i.e., porters, housekeepers)
- Home services (i.e., handymen, repairers)
- Personal services (i.e., tutors, child care providers)
- Personal appearance and wellness (i.e., salon workers, fitness instructors)
- Recreation and instruction (i.e., tour guides)
- Transportation and delivery (i.e., drivers, food/package delivery workers)
No Tax on Overtime
No tax on overtime works in a similar fashion.
If you earned qualified overtime pay in 2025, you may be able to deduct up to $12,500 — or up to $25,000 if you are married filing jointly. The deduction phases out if your MAGI exceeds $150,000 ($300,000 for joint filers). You or your spouse who received the overtime must have a valid SSN, and married filers must file jointly to qualify.
Northern Kentucky Labor Council President Tim Donoghue applauded the effort but said it does not do much to move the needle for workers.
"I think people have to understand the policies. I'm not going to badmouth the policy, because I think anything that adds to a workers' take home pay is good," Donoghue said. "I don't think people understand that, if I work an hour of overtime, I'm paying taxes on that hour. I'm just not paying tax on that half hour on the premium."
Donoghue said the labor council does not work with many organizations where members would see benefits from the tips tax deduction provision, but knows every dollar counts for those employed in the service industry. He said the majority of the workers involved with the labor council will see greater impacts from the no tax on overtime provision.
"My belief in this conversation is it's good that (Trump) added a couple of bucks to my paycheck," Donoghue said. "It's bad what's happened to my insurance. Your check may've went up $10 a week if you're getting overtime, but I know some people that their insurance went up $1,400 a month."
Donoghue said the "insurance hit," referring to the now-expired Affordable Care Act tax credits, is the biggest hit Americans are facing right now.
"Something needs to be done about that," he said. "All this came out of the Big, Beautiful Bill that he passed, and I think that needs to be relooked at. You know, that punished the working class in order to help out the billionaires."
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Ohio Gov. Mike DeWine accompanied President Trump on his visit to Thermo Fisher Scientific in Reading on Wednesday. DeWine was not in attendance for Trump's Hebron speech on affordability, but supports some of the administration's ongoing policy efforts.
"In Ohio, he was really, really focused on driving down the cost of prescriptions," DeWine said, referring to TrumpRx. "They've come up with a plan where you can go up and see what companies have actually agreed to lower these costs."
Regarding the no tax on tips or overtime provisions, DeWine said they will help Ohioans.
"It gives, I think, a real incentive for (workers) to work but also gives them a real break," he said. "It gives them actually extra money in their pocket."
The two provisions are currently in effect for the 2025 tax season through the 2028 tax season, but Congress could choose to extend them.
