Senate's version of Trump's tax bill includes income caps for deductions on tips and overtime.

From Nasdaq: 2025-06-28 04:00:00

President Trump aims to eliminate federal taxes on tips and overtime pay. The House passed the bill, but the Senate is making changes. The House version allowed for tax deductions on tips and overtime pay, with restrictions for highly compensated employees. The Senate’s draft includes income caps for deductions, limiting the maximum deduction amounts and reducing them based on modified adjusted gross incomes. The bill is still in progress, with further changes expected during the reconciliation process. If passed, the deductions would apply to tax years 2025-2028.

Source: https://www.fool.com/taxes/2021/07/16/how-no-taxes-on-tips-and-overtime-would-actually-wor/



Read more at Nasdaq: Here’s Who Won’t Get a Tax Break on Tips and Overtime Pay Under the Senate’s Version of Trump’s “One, Big, Beautiful Bill”