US EditionWhat to know about Trump's tax breaks for tips and overtime when filing state tax returns
Only about a half-dozen states mirror the new federal breaks, and many taxpayers filing now will still owe state taxes on tips and overtime.
- As the Wednesday tax-filing deadline approaches, millions of Americans are claiming new federal income tax breaks for tips and overtime wages enacted by President Donald Trump. Access remains inconsistent across states.
- Federal tax changes are not automatic, as most states require officials to update local laws to match federal policy. Taxpayers often navigate two separate forms, with state taxes applying to earnings exempt federally.
- Only about a half-dozen states, including Idaho, Iowa, Montana, North Dakota, and Oregon, mirror the federal policy by offering tax breaks on tips or overtime. Most other states continue to tax these earnings.
- Arizona Democratic Gov Katie Hobbs issued an executive order allowing these deductions, yet Arizona State University professor Adam Chodorow warns residents may claim deductions "who aren't legally entitled to do so." Arizona law remains unchanged.
- Officials in Georgia, Indiana, and Michigan have enacted laws matching the federal policy for 2026, while South Carolina extended its tax deadline to October 15 to allow legislatures time to act. Policies vary widely.
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What to know about Trump's tax breaks for tips and overtime when filing state tax returns - The Morning Sun
As the tax-filing deadline nears, millions of Americans are expected to claim new federal income tax breaks for tips and overtime wages available for the first time under a wide-ranging tax law enacted by President Donald Trump. But many people won’t get those same deductions when they fill out their state income tax forms. That is because it is up to each state to decide whether to match federal tax changes, and many have decided not to do so. …
What to know about Trump's tax breaks for tips, overtime when filing state returns
DES MOINES, Iowa -- As the tax-filing deadline nears, millions of Americans are expected to claim new federal income tax breaks for tips and overtime wages available for the first time under a wide-ranging tax law enacted by President Donald Trump. But many people won’t get those same deductions when they fill out their state income tax [...]
LancasterOnline
As the deadline for filing the tax return approaches, millions of Americans will claim new federal income tax exemptions for tips and overtime payments, available for the first time under the government's...
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