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.

Congress passed the tax cut and spending megabill with President Trump's legislative priorities which includes new tax exemptions for tipped hourly workers. But how will it work?