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Kiplinger
Kiplinger
Business
Kate Schubel

Emergency Tax Bill Ends $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.

Trump Income Tax DC Council Tax Foundation the City Council
The John A. Wilson Building in Washington D.C. that houses the Mayoral and City Council offices.

Amid a record-breaking federal government shutdown, Washington, D.C. leaders made an emergency move that impacts key tax breaks for residents.

The D.C. City Council decoupled from the new 2025 Trump tax law, thereby removing local income tax savings tied to the new "no tax on tips" deduction and the $6,000 "senior bonus" deduction. This means District of Columbia residents who qualify for these federal tax breaks won't be able to claim them on their local tax returns.

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