Trump, Bill and tax reform
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Econostrum on MSNOvertime Tax and National Insurance Deductions Could Be Scrapped for Emergency WorkersEmergency service workers in the UK, including those in police, ambulance, and fire crews, could see a significant financial boost if calls to remove tax and National Insurance deductions on overtime are successful.
Midrange earners stand to see meaningful savings, too. A warehouse supervisor earning $60,000 with $10,000 in overtime could shave a couple thousand dollars off their federal tax bill. A hotel bartender making $45,000 plus $5,000 in tips could get back all the federal taxes withheld from their tips.
President Donald Trump’s sweeping tax and spending law, known as the “One Big Beautiful Bill Act,” will make permanent large tax cuts from the president’s first term. And it makes good on a campaign
More states may weigh in on the “no tax on overtime” debate. State legislatures will meet throughout the year, and overtime income could be on the slate of bills proposed. More than just your federal tax bill could be on the line, so stay tuned.
The One Big Beautiful Bill (“OBBB”), signed by President Trump on July 4, 2025, allows workers (subject to dollar and income limitations) to
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Questions remain about how elements of the massive tax-and-spending bill signed by the President last week will play out. But here are some
The law covers people who work overtime under the Fair Labor Standards Act, which requires time-and-a-half pay for hours worked over 40 in a week. Many workers — including supervisory and professional workers, the self-employed and independent contractors — do not qualify for overtime and thus would not benefit from the provision.
Millions of Americans can now keep more of their overtime earnings courtesy of language included in President Donald Trump’s “Big Beautiful Bill.”
Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year.
Several provisions of Trump's bill are poised to be retroactive to 2025 or take effect in 2026, and they may shift how Americans approach tax planning.