Limited Income Tax Deductions

Despite the Trump Administration’s promises and an official email that came from the Social Security Administration, the bill DOES NOT eliminate taxes on tips, overtime, or Social Security. This bill makes minor, temporary changes to tax deductions.

Tipped & Hourly Workers

Takes Effect Immediately, Expires in 2028

If you are a tipped or hourly worker, this bill provides a temporary federal income tax deduction for qualified overtime and tips. This income deduction is capped at $25,000 per year for both overtime and tips, and will be included in next year’s tax form.

Social Security

Takes Effect Immediately, Expires in 2028

If you are 65 or older, you will be eligible for a $6,000 income deduction. If you are a Social Security beneficiary under the age of 64, you will not receive this deduction.