The story so far

1. 15 July 2024Promised

   “LARGE TAX CUTS FOR WORKERS, AND NO TAX ON TIPS!”

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2. 4 July 2025Legislated

   Public Law 119-21 creates a federal income tax deduction for tips of up to $25,000 a year, reduced above $150,000 of income ($300,000 for joint returns), for 2025 to 2028 (section 70201), and a deduction for overtime pay (section 70202)

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3. 4 July 2025Legislated

   Public Law 119-21 makes the 2017 law's lower income tax rates permanent (section 70101) and raises the standard deduction (section 70102)

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4. 15 April 2026Delivering

   Treasury reports that more than 53 million filers claimed at least one of the law's new deductions on 2025 returns, including more than 6 million for tips, averaging more than $7,100

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