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Does Trump’s big bill end taxes on tips and overtime?

✇Wisconsin Watch
By: Tom Kertscher ／ Wisconsin Watch
Reading Time: < 1 minute

Wisconsin Watch partners with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. Read our methodology to learn how we check claims.

No.

President Donald Trump’s recently enacted big bill removes the federal income tax on certain tips and overtime, but those tax deductions end in 2028 and have other limitations.

Under the new law, restaurant servers, barbers and other workers who typically work for tips can deduct up to $25,000 of tip income – meaning that amount isn’t taxable. 

For overtime pay, the tax deduction is up to $12,500.

Both deductions generally are for people who earn less than $150,000 annually.

Federal payroll taxes for Social Security and Medicare (FICA), and state and local taxes, still apply.

The tipped income provision would affect about 2% of households, and they would receive an average tax cut of $1,800 annually, the nonpartisan Tax Policy Center estimated.

About 8% of hourly workers and 4% of salaried workers regularly work overtime, according to the Yale Budget Lab.

The average annual savings for the overtime provision is $1,400, according to the White House.

This fact brief is responsive to conversations such as this one.

We’ve written more extensively about this topic in a different article. You can read more about it here.

Sources

Think you know the facts? Put your knowledge to the test. Take the Fact Brief quiz

Does Trump’s big bill end taxes on tips and overtime? is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Does Donald Trump’s big bill provide an additional $1 billion annually for Wisconsin’s Medicaid program?

✇Wisconsin Watch
By: Tom Kertscher ／ Wisconsin Watch
Reading Time: < 1 minute

Wisconsin Watch partners with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. Read our methodology to learn how we check claims.

No.

Wisconsin will receive an estimated $1 billion more annually in federal funds for Medicaid because the state budget includes a change that pre-empts a provision in President Donald Trump’s big bill.

Trump’s bill would have prevented Wisconsin from raising its hospital tax.

But days before Trump signed it, the Republican-led Legislature and Democratic Gov. Tony Evers approved a 2025-27 state budget that raises Wisconsin’s hospital tax from 1.8% to 6%.

The increase will raise some $1 billion more annually in federal matching funds that the state can use to pay hospitals for care they provide Medicaid patients.

Wisconsin’s largest Medicaid program is BadgerCare Plus, which provides health insurance to about 1 million low-income people age 64 and under.

Republican U.S. Rep. Derrick Van Orden, who represents western Wisconsin, claimed that Trump’s bill “secured” the $1 billion.

The bill cuts roughly $1 trillion over 10 years from Medicaid, which costs nearly $900 billion annually.

This fact brief is responsive to conversations such as this one.

Sources

Think you know the facts? Put your knowledge to the test. Take the Fact Brief quiz

Does Donald Trump’s big bill provide an additional $1 billion annually for Wisconsin’s Medicaid program? is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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