‘No Tax on Tips’ Won’t Help Everyone: D.C. Emergency Tax Bill and State Rules Shrink 2025 Breaks on Overtime and Seniors
Washington, D.C. passed an emergency bill on Nov. 16, 2025, blocking new federal tax breaks for tips, overtime, and seniors at the local level. City officials acted as D.C. faces over $1 billion in projected revenue losses tied to federal job cuts. The move means residents cannot claim these deductions on their D.C. taxes despite federal law.