(Nexstar) – The bill signed last week is many of the many provisions within President Donald Trump that can directly affect you, such as change in changes Child tax creditA Tax deduction for seniorsAnd No tax on overtime,
Another aspect that can invest more money in your pocket will depend on where you work – and how you pay.
If you receive the wages given, Tax will be deducted up to $ 25,000 The beginning of this year and running through 2028. The maximum deduction is available to those who have an income of $ 150,000 or less for those who jointly file, or up to $ 300,000.
This also applies only to federal income taxes, which means that people who do not make enough to pay federal income taxes will not benefit from cuts, according to it The Wall Street JournalAdditionally, this will only apply to some businesses. Treasury must provide a list of those qualifying jobs within three months, WSJ Report,
Currently tips are considered taxable.
Pushback on tax deduct cap
Tax deducts are eligible, hat on the amount of wages added by the Senate to the bill, and some pushbacks from some, including rape Alexandria Ocesio-Cortes (DN.Y). He called the cap “scam”, Pointing to other cuts in megabil This can increase taxes for some and take away their snap, medicine, or insurance.
Rape. Lloyd Dogate (D-Texas) Shared similar feelings Regarding the bill passed by the GOP-led Senate, saying, “These are small fruits, such as no taxes on tips, there are issues designed to cover the terrible job that they are doing.”
Trump and former Vice President Kamla Harris launched a campaign on tax-free tips last year, and Senate passed the “No Tax on Tips Act” earlier this year, which Bipartisan support,
The Finance Committee specified that “cash tips” qualifications, but it is said that the term applies to the tips paid in cash, charged from credit card or other employees are obtained under a tip-sharing system.
The National Restaurant Association, a business organization that represents around 500,000 American restaurants and bar, appreciated the passage of the bill of Trump’s spending bill-did not capable the amount of wages given tax-deducted wages-and said it wants to see tax-free tips. The association estimates that more than 2 million servers and bartenders will benefit from the measure.
But American restaurant is industryMore than 12 million workersAccording to government data, including dishwashers and chefs. The Independent Restaurant coalition said that the “no tax on tips” proposal last month leaves many of those workers.
Others instead have called the Congress to take a separate bill introduced by Nevada Democrat Steven Horsford which will eliminate taxes on tips but also Workers require restaurants to pay At least federal minimum wage $ 7.25 per hour. In 43 states, restaurants are currently allowed to pay less, very low working workers as $ 2.13 per hour in some cases.
The Associated Press contributed to this report.
