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.

Now that the tax and spending bill has been signed into law, how it will impact the finances of Americans is more clear.

Californians will be able to deduct more of their state and local taxes on their federal income tax returns thanks to the Big Beautiful Bill President Donald Trump has signed into law.