Business
Tax Tips – Understanding the New “No Tax on Overtime” and “No Tax on Tips” Policies

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Key Changes in Tax Rules for Overtime Pay and Tips – Tax Tips
The One Big Beautiful Bill Act (OBBBA) has introduced significant tax reforms, fulfilling two of President Trump’s key campaign promises: no tax on overtime and no tax on tips. These changes impact both employees and business owners, offering new deductions that could lead to substantial savings.
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If you’re wondering how these tax changes affect you—whether as a worker earning overtime or tips, or as an employer managing payroll—this guide breaks down everything you need to know.
No Tax on Overtime: What You Need to Know -Tax Tips
1. Deduction Details
- Retroactive to January 2025, the OBBBA allows employees to claim an above-the-line tax deduction on qualified overtime pay.
- Single filers can deduct up to $12,500, while joint filers can deduct up to $25,000.
- The deduction phases out for individuals earning over $150,000 (or $300,000 for joint filers).
- No itemization required—this deduction is available even if you take the standard deduction.
2. What Qualifies as Tax-Free Overtime?
- Only overtime wages exceeding the normal pay rate are eligible.
- Example: If your regular wage is $20/hour and overtime is $30/hour, you can deduct the extra $10/hour.
- Overtime must be paid under Section 7 of the Fair Labor Standards Act (FLSA)—meaning it applies only to employees working more than 40 hours per week.
- Overtime paid under contractual agreements or state laws only qualifies if it meets FLSA standards.
3. Payroll and Reporting Requirements
- Employers must track and report qualified overtime wages separately on Form W-2.
- A transition rule for 2025 allows employers to estimate overtime wages using a “reasonable method” until the IRS provides further guidance.
- Important Note: Overtime pay is still subject to payroll taxes (Social Security and Medicare).
4. Temporary Benefit
This deduction is only available until 2028, so employees should maximize savings while it lasts.

No Tax on Tips: How It Works
1. Deduction Overview
- Retroactive to 2025, tipped workers can claim an above-the-line deduction of up to $25,000.
- The deduction phases out for those earning over $150,000 (or $300,000 for joint filers).
- Like the overtime deduction, no itemization is required.
2. Who Qualifies?
- Workers in occupations that customarily receive tips (e.g., servers, bartenders, home service professionals).
- The Treasury Department will publish a list of qualifying jobs by early October 2024.
- Tips must be voluntary—mandatory service charges don’t count.
3. Exclusions to Be Aware Of
Employees in Specified Service Trades or Businesses (SSTBs) cannot claim this deduction. SSTBs include:
- Accounting, law, healthcare, consulting
- Financial services, brokerage, performing arts
- Businesses where the primary asset is the reputation or skill of the owner/employee
4. Reporting Tips Correctly
- Tips must be reported on Form W-2.
- A transition rule allows flexibility in reporting for 2025.
- Note: Tips are still subject to payroll taxes (Social Security and Medicare).
5. Temporary Benefit
This deduction also expires after 2028, so workers should take advantage while it’s available.

How Employers Should Prepare
1. For Overtime Pay
- Work with payroll providers or accountants to ensure proper tracking of eligible overtime.
- Update payroll systems to separately report qualified overtime wages on W-2 forms.
2. For Tipped Employees
- Identify which employees regularly receive tips.
- Ensure tips are voluntary (not mandatory service charges).
- Monitor IRS updates for the official list of qualifying occupations.
Key Takeaways for Workers and Businesses
✅ Overtime Deduction: Up to $12,500 (single) / $25,000 (joint) for eligible overtime pay.
✅ Tips Deduction: Up to $25,000 for workers in tip-heavy industries.
⚠️ Income Limits: Deductions phase out above $150,000 (single) / $300,000 (joint).
⚠️ Temporary Benefit: Both deductions expire after 2028.
📌 Payroll Taxes Still Apply: Overtime and tips remain subject to Social Security & Medicare taxes.
Final Thoughts: Maximizing Your Tax Savings
These new tax rules provide valuable savings opportunities for workers earning overtime or tips. However, the deductions are time-limited, so it’s crucial to:
- Track eligible overtime hours carefully.
- Report tips accurately to avoid IRS issues.
- Consult a tax professional to ensure compliance and maximize benefits.
For business owners, staying updated on IRS guidance and adjusting payroll systems will be key to smooth implementation.
Need Help with Tax Tips? Consult a Professional!
This article provides general information—always consult a tax advisor or accountant for personalized advice based on your financial situation.
By understanding these new policies, you can keep more of your hard-earned money and avoid surprises at tax time. Stay informed and plan ahead!
Business
Openai Dev Day:OpenAI Agent Builder Launch Sparks Excitement and Debate

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Openai Dev Day:OpenAI Agent Builder Launches Sparks Excitement and Debate

OpenAI’s Next Big Leap: ChatGPT-Powered Agent Builder:Openai Dev Day
OpenAI is once again making headlines with its latest innovation — a ChatGPT-powered Agent Builder designed to let users create their own AI agents. This experimental tool could mark a revolutionary moment in AI development, giving creators, businesses, and everyday users the power to build custom, intelligent workflows without writing complex code.
Thank you for reading this post, don't forget to subscribe!Spotted by tech researchers on X (formerly Twitter), the new Agent Builder appears to use a flowchart-style interface where users can drag and drop “nodes” to define how their AI agent behaves. Each node performs a specific task, and arrows indicate the sequence of actions.
This visual approach is being compared to Microsoft’s Visual Studio moment — potentially the tool that democratizes AI development for the masses.
How the OpenAI Agent Builder Works:Openai Dev Day
The leaked screenshots reveal an intuitive layout. Users can start from pre-built templates like:
- “Customer Service”
- “Data Enrichment”
- “Document Comparison”
Or, they can click “Create” to begin from scratch.
Each template contains a network of nodes — building blocks that can perform tasks such as generating text, summarizing data, or calling an external API. These nodes connect to an Agent, which acts as the brain of the workflow.
Users can:
- Choose their preferred AI model (such as GPT-5 or GPT-4-turbo).
- Customize prompts and rules.
- Set “Reasoning effort” — a new parameter that may control how deeply the model thinks.
- Choose output formats, including text or JSON.
Essentially, OpenAI’s Agent Builder is turning ChatGPT into a developer platform for AI automation.
MCP Integration: AI Meets Your Apps
One of the most powerful features spotted in the leak is MCP (Model Context Protocol) support. This means Agent Builder can connect directly to popular productivity tools like:
- Gmail
- Google Drive
- Google Calendar
- Outlook
- SharePoint
- Teams
- Dropbox
This connectivity allows users to create AI workflows that can read emails, summarize files, fetch events, or even draft replies automatically — all within one intelligent system.
For instance, an AI agent could scan your Google Calendar, summarize your daily meetings, check documents in Dropbox, and then send a summary email via Outlook — all seamlessly automated.
“This could be the future of personalized AI assistants,” one tech analyst noted. “It’s not just chat anymore — it’s action.”
OpenAI’s Vision: From Chatbot to Agentic Intelligence
OpenAI has been steadily evolving ChatGPT from a conversational assistant into an agentic AI system — one that can think, plan, and act autonomously.
Earlier this year, the company introduced GPTs — customizable versions of ChatGPT for specific tasks. The new Agent Builder takes this concept even further by allowing users to visually design workflows powered by GPT models.
AI startups have long believed that AI agents are the next frontier — capable of doing more than just generating text. They can execute real actions, manage data, and integrate with digital ecosystems.
If OpenAI delivers on this promise, Agent Builder could redefine how businesses and individuals interact with technology.
Positive Sentiments: Innovation, Empowerment, and Accessibility
The announcement has sparked overwhelming excitement among developers, tech enthusiasts, and businesses.
- Innovation at Its Peak – The Agent Builder shows OpenAI’s commitment to pushing boundaries in user-driven AI development.
- Empowerment for Non-Coders – With its visual, drag-and-drop design, anyone can create intelligent automations — no technical background required.
- Productivity Boost – By connecting with everyday tools like Gmail and Teams, users can drastically reduce repetitive tasks.
- Custom AI Agents for Everyone – Small businesses and solo entrepreneurs can now design their own virtual assistants tailored to unique needs.
This step makes AI more inclusive and accessible, bridging the gap between complex technology and everyday productivity.
Negative Sentiments: Privacy, Complexity, and Competition:Openai Dev Day
Despite the enthusiasm, the OpenAI Agent Builder also raises some concerns.
- Privacy Questions – Integrating AI with services like Gmail or Drive could spark debates around data privacy and security.
- Overreliance on Automation – Critics argue that too much automation may lead to reduced human oversight in critical business tasks.
- Complexity Behind Simplicity – While the visual interface looks easy, designing effective AI workflows still requires logical thinking and understanding AI behavior.
- Rising Competition – Rivals like Anthropic, Google DeepMind, and Microsoft Copilot Studio may respond with competing products, intensifying the AI tool race.
Still, most analysts agree that these challenges are part of the natural evolution of a rapidly expanding industry.
OpenAI DevDay: Official Details Coming Soon:Openai Dev Day
OpenAI is expected to reveal full details about Agent Builder at its annual DevDay Conference later today.
During the event, CEO Sam Altman is likely to outline how this tool fits into OpenAI’s broader ecosystem — including GPT-5, ChatGPT Go, and enterprise integrations.
“We’re entering the age of personalized AI creation,” a spokesperson said. “Agent Builder is a big step toward that vision.”
Fans and developers can tune into the OpenAI DevDay livestream for updates, demonstrations, and release timelines.
The Power of Agentic AI: A New Era for OpenAI

The power of Agent Builder lies in its ability to transform ChatGPT from a question-answer bot into a do-anything assistant.
By combining automation, reasoning, and integration, OpenAI is redefining what it means to “use AI.” Whether it’s customer support, data processing, or scheduling — your AI agent could soon handle it all.
While the road ahead includes challenges, one thing is certain: OpenAI’s Agent Builder could be the tool that makes AI creation as easy as building with LEGO.
Business
RR Stock Surges With Powerful Momentum But Risks Remain Ahead

RR Stock Surges With Powerful Momentum But Risks Remain Ahead
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RR Stock Surges With Powerful Momentum But Risks Remain Ahead

Rolls-Royce Holdings plc (RR stock) has been a hot topic in global financial markets recently, as investors closely watch its powerful rebound in 2025. The stock, listed on the London Stock Exchange (LSE) under ticker RR.L, has experienced both bullish momentum and cautious pullbacks, leaving many asking the big question: Is Rolls-Royce truly flying high again, or are turbulence and risks still ahead?
Thank you for reading this post, don't forget to subscribe!👉 See the official Rolls-Royce investor relations page for financial updates.
Performance in 2025
After years of challenges stemming from the pandemic and costly restructuring, RR stock has gained strong traction in recent months. Shares have climbed more than 30% year-to-date, outpacing the FTSE 100 index and rival aerospace companies.
This rally is largely fueled by:
- Stronger aviation demand as global travel rebounds.
- Improved defense contracts providing steady cash flow.
- Restructuring success, which has reduced costs and improved efficiency.
The numbers show undeniable progress, but the road is not without obstacles.
Positive Sentiment: RR Stock Is Flying Higher
Investors with a bullish outlook argue that Rolls-Royce is finally entering a powerful growth phase after years of turbulence.
- Travel Rebound – With international air travel nearing pre-pandemic levels, Rolls-Royce’s jet engine business is thriving.
- Defense Stability – Strong contracts with governments worldwide provide resilience against market downturns.
- Restructuring Success – Cost-cutting measures and divestments have stabilized cash flow.
- Investor Confidence – Major institutions are increasing positions in stock, signaling faith in its long-term value.
- Green Transition – Rolls-Royce is investing heavily in sustainable aviation fuel (SAF) and mini nuclear reactors, giving the company a long-term innovation edge.
These factors have led analysts to upgrade with some forecasting another 15–20% upside potential in 2025.
👉 Related reading: Financial Times coverage of Rolls-Royce.
Negative Sentiment: Risks Still Cloud the Sky
Despite optimism, risks remain for stock investors.
- Debt Load – Rolls-Royce still carries significant debt from the pandemic years, which could limit flexibility.
- Economic Slowdown – If global recession fears materialize, air travel demand could decline again.
- Competition – Rivals like GE Aerospace and Pratt & Whitney continue to compete fiercely in the engine market.
- Volatility – RR remains highly sensitive to headlines, often swinging on airline demand forecasts.
- Execution Risk – Rolls-Royce’s future bets on clean energy and new technologies may take years to pay off, with no guarantee of success.
Some skeptics believe it may be overbought, cautioning that a correction could be on the horizon.
Analyst Outlook on RR Stock
Market analysts remain divided:
- Bullish Case – Rolls-Royce could extend gains if earnings continue to beat expectations, with some analysts predicting the stock could rise above £5 per share by the end of 2025.
- Bearish Case – If macroeconomic risks worsen or new technical issues emerge in its engines, RR stock could retreat back below £3.50, erasing much of its recent rally.
This mixed sentiment shows just how polarized the investment community is about Rolls-Royce’s future.
👉 For updated analyst ratings, check MarketWatch stock page.
RR Stock and the Power of Innovation
One powerful driver of investor excitement is Rolls-Royce’s commitment to innovation. The company is pioneering net-zero aviation, expanding in defense technology, and developing modular nuclear reactors (SMRs) for clean energy.
This vision for the future could help Rolls-Royce reinvent itself, appealing not only to aviation investors but also to those seeking exposure to green tech and energy transition.
Should You Buy RR Stock Now?
The question for investors is not whether Rolls-Royce has made progress — it clearly has — but whether its recent surge is sustainable.
- For Long-Term Investors: RR stock could be a rewarding play if you believe in aviation growth and Rolls-Royce’s innovation roadmap.
- For Short-Term Traders: Volatility may offer opportunities, but also significant risks. Tight stop-loss strategies may be wise.
- For Cautious Investors: Watching from the sidelines until debt is reduced further might be the safer option.
Conclusion: RR Stock at a Crossroads

The story of Stocks in 2025 is one of powerful recovery, cautious optimism, and ongoing risks. Rolls-Royce has proven it can survive turbulence, but whether it can sustain flight into a new era of profitability remains to be seen.
Investors must weigh the positive momentum of aviation recovery and innovation against the negative risks of debt, volatility, and competition. One thing is certain: It will remain one of the most closely watched shares on the London market this year.
👉 For real-time stock movements, follow London Stock Exchange RR.L.
News
Cook’s Supreme Court Battle: 5 Powerful Takeaways on Fed Independence

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Cook’s Supreme Court Battle: 5 Powerful Takeaways on Fed Independence
Washington, D.C. — The ongoing case of Cook has sparked national debate as the Supreme Court temporarily allowed her to remain on the Federal Reserve Board, deferring President Trump’s attempts to remove her until oral arguments scheduled in January 2026. This decision highlights the balance between presidential power and the central bank’s independence, creating both optimism and anxiety across political and financial circles.
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Supreme Court Pauses Trump’s Push
The Supreme Court declined to immediately permit President Trump to oust lisa from the Fed. While this move protects Cook’s current role, it also signals an uncertain future as the court prepares for a landmark hearing in January. Read more her Cook Matters
Lisa , a respected economist, has been pivotal in shaping Fed policy. Her role ensures stability during turbulent markets, and supporters argue her removal would shake investor confidence. Critics, however, believe her views clash with the administration’s economic direction, causing friction with Trump’s agenda.
Positive Sentiment: Confidence in Fed’s Independence

Economists praised the court’s move, noting it underscores the Federal Reserve’s independence. Former Treasury officials warned that firing Cook mid-litigation could lead to financial chaos. For many, the ruling reflects a commitment to stability.
Negative Sentiment: Political Uncertainty Looms
At the same time, the decision leaves the U.S. economy exposed to political wrangling. Trump’s allies argue that a president should have more authority over independent agencies, sparking fears of an eventual shake-up that could undermine global confidence in the Fed.
Market and Policy Impact
- Investors reacted cautiously to the news, with Wall Street showing mixed signals.
- Analysts suggest the January hearing could become a defining moment for the future of monetary policy.
- International markets are also watching closely, as U.S. monetary independence affects global trade and finance.
What Happens Next

The Supreme Court will hear oral arguments in January 2026, setting up one of the most consequential cases in recent years. For now, Lisa Cook stays at the Fed, symbolizing resilience against political pressure but facing an uncertain path ahead.
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