Thousands of IRS employees have been laid off as the tax refund season begins.
The layoffs primarily impact the hires made by President Biden aimed at enforcing tax regulations on wealthy taxpayers.
A budget resolution was passed on Tuesday, February 25, which paves the way for President Donald Trump’s ambitious proposal for $4.5 trillion in tax cuts and $2 trillion in spending reductions over the next decade.
During his campaign, Trump promised to eliminate taxes on tips received by workers in industries such as restaurants, delivery services, and gig jobs. He reiterated this commitment in January, pledging to abolish taxes on tips for all professions.
Additionally, he vowed to support measures aimed at eliminating taxes on overtime pay, asserting that this could incentivize more individuals to increase their work hours.
“Those who work overtime are some of the most diligent citizens in our nation, yet for too long, Congress has neglected their needs,” he stated at a rally on September 12, 2024.
The budget resolution approved on Tuesday enables lawmakers to pursue campaign promises concerning the cessation of taxes on tips, overtime wages, and Social Security benefits, although no specific policy or bill is included in the resolution at this time.
Here’s additional information on potential tax changes in these areas, along with details on upcoming tax filing deadlines and refund procedures.
Did Trump abolish taxes on tips and overtime?
USA TODAY clarifies that the House resolution supports Trump’s fundamental budget proposals—laying out the framework for government spending. A compromise bill is necessary since the Senate recently passed a different resolution.
The vote on the budget resolution passed in the House with a narrow margin of 217-215, with all Democrats and one Republican opposing it. The passage of this resolution allows Congress to proceed with discussions and the implementation of Trump’s proposed legislation.
When can I submit my 2024 taxes?
Tax season commenced on Monday, January 27.
When is the deadline for 2025 taxes?
For the majority of the country, Tax Day is set for April 15, which remains the deadline unless that date falls on a weekend or holiday. This year, it lands on a Tuesday.
Following Tropical Storm Helene, there will be some exceptions for those impacted by the storm, including an extension of the income tax filing deadline to March 1.
Where can I find my refund?
If you’ve already filed your tax return, you can check the status of your federal tax refund on the IRS’s dedicated webpage. To do so, you’ll need your Social Security number or individual taxpayer ID number, along with your filing status and the precise refund amount reported on your return.
The status will be available 24 hours after e-filing a current-year return, three to four days post e-filing a prior-year return, or four weeks after submitting a paper return. The website indicates that refund status updates occur nightly every 24 hours.
Here’s how to interpret the status of your federal tax return:
- Return Received – The IRS has accepted your return and is in the processing stage.
- Refund Approved – Your refund has been approved by the IRS, and preparations to issue it are underway. The issue date will be noted.
- Refund Sent – Your refund has been dispatched by the IRS either via direct deposit or by mail. Keep in mind that it may take up to five days for it to appear in your bank account or several weeks for a check to arrive via mail.
Maria Francis, USA TODAY NETWORK, contributed to this article.
Iris Seaton is a trending news reporter for the Asheville Citizen Times, part of the USA TODAY Network. You can reach her at iseaton@citizentimes.com.
