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

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.

In states that don’t conform to the federal tax changes, workers who receive a federal tax deduction for tips or overtime still will owe state taxes on those earnings.

Source

Associated Press

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