Key Takeaways
• The One Big Beautiful Bill Act offers tax breaks on tips, overtime pay, and Social Security benefits starting July 3, 2025.
• SSNs are required for the child tax credit, but not clearly for tip and overtime deductions.
• H-1B workers with ITINs may face tax challenges if SSN rules change for tip and overtime deductions.
As of July 3, 2025, the One Big Beautiful Bill Act is drawing national attention for its sweeping tax reforms, especially those affecting Social Security benefits, tips, and overtime pay. Many workers and employers are eager to understand how these changes will impact their taxes. One of the most pressing questions is whether the Act requires Social Security Numbers (SSNs) for claiming deductions on tips and overtime pay—a detail that could have a big effect on H-1B workers in the United States 🇺🇸.
Let’s break down what’s known, what’s still unclear, and what this could mean for H-1B workers, employers, and families across the country.
What Is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act is a major piece of tax legislation passed by Congress in 2025. Its main goals are to:
- Reduce taxes on Social Security benefits for most seniors
- Provide tax breaks on tips and overtime pay for workers in certain industries
- Increase the child tax credit for families
The Act is designed to help working families, seniors, and people in service jobs who often rely on tips or overtime to make ends meet.
Key Provisions: What Does the Act Actually Do?
1. No Tax on Social Security Benefits for Most Seniors
88% of seniors who receive Social Security will pay no tax on their benefits. This is a big change from previous years, when many seniors had to pay taxes on part of their Social Security income. The goal is to help older Americans keep more of their retirement money.
2. Tax Breaks for Tips and Overtime Pay
The Act allows workers in traditionally tipped industries (like restaurants, hotels, and salons) to deduct tips from their gross income. It also lets workers deduct overtime pay that goes above their regular hourly rate, as defined by the Fair Labor Standards Act.
This means that if you earn extra money from tips or by working overtime, you might be able to lower your taxable income and pay less in taxes.
3. Bigger Child Tax Credit
Families will see the child tax credit increase to $2,500 per child for tax years 2025 through 2028. After 2026, the credit will also be adjusted for inflation, so it keeps up with the cost of living.
4. SSN Requirements for Some Tax Credits
The Act requires SSNs for the child tax credit. If you want to claim this credit, you must provide your own SSN and, if you’re married and filing jointly, your spouse’s SSN. The SSN must be work-eligible, meaning it’s valid for employment in the United States 🇺🇸.
The Big Question: Are SSNs Required for Tip and Overtime Deductions?
Here’s where things get tricky. The text of the One Big Beautiful Bill Act does not clearly say whether you need an SSN to claim the new deductions for tips and overtime pay. This has led to confusion, especially among H-1B workers who may not have an SSN but instead use an Individual Taxpayer Identification Number (ITIN).
What’s the Difference Between an SSN and an ITIN?
- SSN (Social Security Number): Issued by the Social Security Administration to U.S. citizens, permanent residents, and some temporary workers (including many H-1B visa holders). It’s used for work and tax purposes.
- ITIN (Individual Taxpayer Identification Number): Issued by the IRS to people who need to pay taxes but are not eligible for an SSN. Many non-immigrant visa holders, including some H-1B workers and their dependents, use ITINs.
Why Does This Matter for H-1B Workers?
H-1B workers are skilled professionals from other countries who come to the United States 🇺🇸 to work in specialty jobs, often in technology, healthcare, or education. They are usually eligible for an SSN, but there are situations where they or their family members might only have an ITIN.
If the IRS or Congress decides that only people with SSNs can claim the new tip and overtime deductions, H-1B workers without an SSN could be left out. This would mean they pay more in taxes than other workers doing the same job.
What Does the Law Say Right Now?
As of July 2025, there is no clear rule in the One Big Beautiful Bill Act that says you must have an SSN to claim tip or overtime deductions. The only place the Act specifically mentions SSNs is for the child tax credit.
However, tax experts warn that this could change. Sometimes, the IRS issues new rules or Congress passes updates that add SSN requirements to other tax credits or deductions.
For now:
– Tip and overtime deductions are available to eligible workers.
– There is no official SSN requirement for these deductions.
– The child tax credit does require an SSN.
What Are the Implications for H-1B Workers?
1. If SSN Requirements Are Added
If Congress or the IRS later decides that only people with SSNs can claim these deductions, H-1B workers without an SSN could lose out on valuable tax breaks. This could mean:
- Higher taxes for H-1B workers who rely on tips or overtime pay
- Unequal treatment compared to U.S. citizens or permanent residents with SSNs
- More paperwork and confusion for employers and workers
2. If SSN Requirements Stay the Same
If the law stays as it is, H-1B workers with either an SSN or ITIN should be able to claim the deductions. This would help ensure fair treatment for all workers, regardless of immigration status.
3. For Employers
Employers in industries with lots of tipped or overtime workers (like restaurants, hotels, and healthcare) will need to:
- Report tips and overtime pay separately on employees’ W-2 forms
- Keep careful records in case the IRS asks for proof
- Stay updated on any changes to SSN or ITIN requirements
This could mean more work for payroll departments and accountants.
What Do Experts Say?
Tax and immigration experts agree that the lack of clear rules about SSNs for tip and overtime deductions is a problem. As reported by VisaVerge.com, many professionals are urging Congress and the IRS to provide more guidance. They point out that:
- Unclear rules create confusion for workers and employers
- H-1B workers could be unfairly excluded if SSN requirements are added later
- Clear, fair rules are needed to make sure everyone is treated the same
How Does This Affect Different Groups?
H-1B Workers
- With SSNs: Most H-1B workers are eligible for SSNs and should be able to claim all available deductions.
- With ITINs only: Some H-1B workers or their family members may only have ITINs. If SSN requirements are added, they could lose out on tax breaks.
Employers
- More paperwork: Employers must track tips and overtime pay carefully and report them correctly.
- Potential for mistakes: If rules change, employers could make errors that lead to IRS penalties.
Families
- Child tax credit: Families must have SSNs to claim the child tax credit. This could affect H-1B families with children who do not have SSNs.
Seniors
- Social Security benefits: Most seniors will benefit from the new rule that makes Social Security benefits tax-free.
What Should H-1B Workers and Employers Do Now?
1. Check Your SSN or ITIN Status
If you’re an H-1B worker, make sure you know whether you have an SSN or ITIN. If you’re eligible for an SSN but don’t have one yet, apply as soon as possible through the Social Security Administration.
2. Keep Good Records
Keep careful records of your tips and overtime pay. Save your pay stubs, W-2 forms, and any other documents that show your income.
3. Watch for Updates
Check official government websites like IRS.gov for the latest information about tax rules and SSN requirements. The IRS often updates its rules and publishes new forms and instructions.
4. Talk to a Tax Professional
If you’re unsure about your situation, talk to a tax professional who understands both immigration and tax law. They can help you make sure you’re following the rules and getting all the deductions you’re entitled to.
What’s Next? The Future of the One Big Beautiful Bill Act
The Senate has passed its own version of the One Big Beautiful Bill Act, which includes similar tax breaks for tips and overtime pay. However, there are some differences in the details between the House and Senate versions. As lawmakers work to combine the two versions, there could be changes to the rules about SSNs and who can claim certain deductions.
It’s important to keep an eye on the news and check official sources for updates. Changes could happen quickly, and they could affect your taxes for 2025 and beyond.
Frequently Asked Questions
Q: Do I need an SSN to claim the new tip and overtime deductions?
A: As of July 2025, there is no clear rule saying you must have an SSN to claim these deductions. However, the child tax credit does require an SSN.
Q: I’m an H-1B worker with an ITIN. Can I claim these deductions?
A: Right now, yes. But if Congress or the IRS adds an SSN requirement in the future, you could be excluded.
Q: How do I apply for an SSN?
A: If you’re eligible, you can apply for an SSN through the Social Security Administration. You’ll need to provide proof of your immigration status and work eligibility.
Q: Where can I find the latest information about tax rules?
A: The best place to check is the IRS official website. They post updates, forms, and instructions for taxpayers.
Official Resources
For the most up-to-date information on tax credits, SSN requirements, and how the One Big Beautiful Bill Act affects you, visit the IRS official website. This site provides forms, instructions, and news about tax law changes.
Final Thoughts and Practical Steps
The One Big Beautiful Bill Act brings important changes for workers, families, and seniors in the United States 🇺🇸. While the Act offers new tax breaks on tips and overtime pay, the rules about SSN requirements are still unclear for these deductions. This is especially important for H-1B workers, who may use either an SSN or ITIN.
Key takeaways:
- Most seniors will pay no tax on Social Security benefits.
- Workers in tipped or overtime-heavy jobs may get new tax breaks.
- Families need SSNs to claim the child tax credit.
- There is no official SSN requirement for tip or overtime deductions—yet.
- H-1B workers should stay alert for changes and keep good records.
As the law continues to develop, it’s wise to check official sources, talk to tax professionals, and make sure you have the right paperwork. Analysis from VisaVerge.com suggests that more guidance is needed to ensure fair treatment for all workers, including those on H-1B visas.
By staying informed and prepared, you can make the most of the new tax rules and avoid surprises when it’s time to file your taxes.
Learn Today
One Big Beautiful Bill Act → A 2025 U.S. tax law providing breaks on Social Security benefits, tips, overtime, and increasing child tax credits.
Social Security Number (SSN) → A unique number for U.S. work and tax identification, required for some tax credits.
Individual Taxpayer Identification Number (ITIN) → Issued by IRS for tax purposes to those ineligible for SSN, including some H-1B visa holders.
Child Tax Credit → A tax benefit providing up to $2,500 per child, requiring a valid SSN under the new law.
H-1B Worker → A skilled foreign professional with a temporary U.S. work visa, often affected by tax and SSN rules.
This Article in a Nutshell
The One Big Beautiful Bill Act introduces tax reductions on Social Security benefits, tips, and overtime pay. H-1B workers may face uncertainty due to unclear Social Security Number requirements for tax deductions on tips and overtime, while families get increased child tax credits until 2028.
— By VisaVerge.com
