Nearly 37% of tipped workers paid no income tax in 2022, Yale’s Budget Lab reported. In contrast, wealthier households stand to gain more due to higher tax brackets and itemized deductions.

Trump's legislation also reduces itemized deductions for certain taxpayers in the top, 37%, income tax bracket, which lowers the benefit of the bigger SALT cap for the highest earners.

It decreases the value of the charitable deduction for high-income taxpayers by capping itemized deductions and sets a new floor of 0.5% of adjusted gross income for the itemized charitable deduction.

The reduction of itemized deductions for certain taxpayers in the 37% income tax, seen in the Senate version of the bill, could lower the benefit of a higher SALT cap. How do the changes affect you?

The One Big Beautiful Bill cements TCJA tax cuts, expands child credit, adds senior and auto loan deductions, and raises SALT cap—some provisions expire after 2028 ...

With the higher, itemized deductions, the Smiths will now save $4,340 compared with what they have been paying in federal taxes. "When it comes to taxes, nobody is ever happy," Cole said.

The Senate has passed its version of the Fiscal Year (FY) 2025 reconciliation bill – the One Big Beautiful Bill Act (OBBBA). The table below is a comprehensive tally of each provision included in the ...

Senate Republicans’ tax bill raises the “SALT” deduction cap to $40,000. Here’s who could benefit from the change.