OBBBA 2026

Wisconsin Governor Vetoes No-Tax-on-Tips and Overtime Bills

Governor Evers vetoed SB 36 and AB 461 on April 4, 2026. Wisconsin workers will not receive state-level OBBBA deductions.

When Does No Tax on Tips Start?

The effective date, retroactive application to 2025, and when you will actually see savings on your paycheck.

Do Cash Tips Qualify for the Tips Deduction?

Cash tips, credit card tips, 1099 tips, and self-employed tips: which qualify for the IRC Section 224 deduction.

Does No Tax on Tips Reduce FICA?

The tips deduction reduces income tax but not Social Security or Medicare. Here is exactly why.

How the $25,000 Tips Cap Phases Out

The MAGI-based phase-out that reduces the tips deduction by 10% of excess income, with worked examples.

Who Qualifies for No Tax on Overtime?

FLSA non-exempt status, the salaried-exempt exclusion, and why independent contractors do not qualify.

Only the Overtime Premium Is Deductible

Why your $37.50/hr overtime pay only yields a $12.50/hr deduction, with worked examples.

Does No Tax on Overtime Reduce FICA?

Like the tips deduction, the overtime deduction only reduces federal income tax. FICA still applies.

Can Salaried Employees Claim the Overtime Deduction?

FLSA exempt vs non-exempt status and why most salaried employees cannot claim the Section 225 deduction.

What Is the $6,000 Senior Deduction?

The OBBBA senior bonus deduction explained: who qualifies, the phase-out, and how it stacks.

Is Social Security Taxed in 2026? What Seniors Need to Know

The OBBBA did not eliminate SS taxation. Up to 85% of benefits can be taxable.

Three Tax Deductions for Seniors in 2026

Additional standard deduction, OBBBA senior bonus, and catch-up contributions.

How to Calculate the Senior Deduction Phase-Out

Step-by-step phase-out calculation with worked examples at multiple income levels.

Senior Deduction for Married Couples Filing Jointly

Both spouses age 65+ each get $6,000 (per-taxpayer). Combined: $12,000.

Overtime Deduction with Union CBA Rates in 2026

How collective bargaining agreement overtime rates affect the premium calculation and deduction amount.

Overtime Deduction for Police Officers and Firefighters in 2026

How the FLSA 7(k) work period affects overtime deduction calculations for public safety workers.

FLSA-Exempt Workers Cannot Claim the Overtime Deduction

Truck drivers, railroad workers, and salaried-exempt employees are excluded from the overtime deduction.

Tips Deduction for Delivery Drivers: DoorDash, Uber Eats, and Pizza in 2026

W-2 pizza drivers qualify; 1099 DoorDash and Uber Eats drivers do not. The employment classification divide.

Overtime Deduction for Construction and Trades Workers in 2026

Construction and trades workers are classic FLSA non-exempt employees with strong deduction claims.

Tips Deduction for Hairstylists and Salon Workers in 2026

Salon stylists on W-2 qualify, but booth renters on 1099 do not. The critical employment-status distinction.

Do Nurses Qualify for the Tips Deduction in 2026?

Nursing is not traditionally a customarily tipped occupation. Why most nurses likely do not qualify.

Tips Deduction for Restaurant Workers: Servers and Bartenders in 2026

How the OBBBA tips deduction works for restaurant servers and bartenders, with worked pay scenarios.

Why Gig Workers on 1099 Cannot Claim the Tips Deduction

IRC Section 224 requires W-2 employment. Independent contractors on 1099 are excluded.

Does California Tax Tips in 2026? Waiting for the FTB

California has not conformed to the OBBBA tips or overtime deductions. What CA workers need to know.

Does New York Tax Tips in 2026? What We Know So Far

New York has not conformed to the OBBBA tips deduction. Here is what NY tipped workers need to know.

Wisconsin, Michigan, Indiana: OBBBA Conformity Resolved

Michigan and Indiana now confirm OBBBA tips and overtime deductions. Wisconsin's governor vetoed conformity bills. Updated September 2026.

SALT Cap Phase-Down: Five Worked Scenarios for 2026

Five scenarios showing how the SALT cap phases down from $40,400 to the $10,000 floor.

Senior Bonus Deduction and Social Security: How They Interact

The $6,000 senior bonus reduces AGI, which can lower the taxable portion of Social Security benefits.

Married Filing Separately and OBBBA: Why MFS Filers Are Excluded

MFS filers cannot claim the tips, overtime, or senior bonus deductions. Here is why and what they can do.

The OBBBA Phase-Out: How MAGI Reduces All Four Deductions

Side-by-side comparison of all four MAGI phase-outs: tips, overtime, senior bonus, and SALT cap.

Schedule 1-A Walkthrough: Claiming Tips, Overtime, and the Senior Deduction

Step-by-step instructions for filling out the new Schedule 1-A, from W-2 codes to Form 1040.