Are you eligible for Trump's tax relief on tips, overtime and Social Security?
President Donald Trump's megabill delivers on tax relief that he promised on the campaign trail, but many of the provisions are temporary, and not everyone qualifies.
President Donald Trump's megabill delivers on tax relief that he promised on the campaign trail, but many of the provisions are temporary, and not everyone qualifies.
President Donald Trump's megabill delivers on tax relief that he promised on the campaign trail, but many of the provisions are temporary, and not everyone qualifies.
President Donald Trump's megabill follows through on tax relief that he promised on the campaign trail, but many of the provisions are temporary, and not everyone qualifies.
"We delivered no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors," Trump declared before signing the bill on Independence Day.
The bill allows workers to deduct up to $25,000 in tips annually from their taxable income. This applies to occupations "which customarily and regularly" receive tips.
On overtime pay, the deduction is capped at $12,500 for single filers and $25,000 for married couples filing jointly.
The tax relief provisions on both tips and overtime pay apply to individuals making up to $150,000 per year and $300,000 for couples filing jointly. Deductions gradually decrease for incomes above that threshold.
The bill does not entirely eliminate taxes on Social Security but includes an additional $6,000 tax deduction for seniors. Eligible taxpayers must be 65 and over, making $75,000 or less individually or $150,000 for joint filers. This deduction is also phased out for incomes above that level.
Unless Congress extends these measures, they will expire after the tax year 2028, toward the end of Trump's term.
