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The Independent UK
The Independent UK
National
David A. Lieb

What to know about Trump's tax breaks for tips and overtime when filing state tax returns

US Tax Cuts States What to Know - (Copyright 2025 The Associated Press. All rights reserved.)

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.

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