President Trump's One Big Beautiful Bill introduces significant changes to transportation in New York City. The bill includes new tax breaks for drivers, allowing deductions for up to $25,000 in tip income and $12,500 in overtime pay, benefiting many workers in the industry. However, these tax benefits phase out for higher earners. In contrast, the bill eliminates federal tax incentives for electric vehicles, which may impede efforts towards a greener future in the city. Additionally, the scope of what constitutes tip income and qualifying overtime pay remains to be clearly defined.
The bill includes two standout provisions: tax breaks for tips and overtime, and the end of federal tax incentives for electric vehicles.
Workers can now deduct up to $25,000 in tip income and $12,500 in overtime pay from their federal taxable income.
The new law lets workers potentially keep a greater portion of their tip income tax-free, benefiting the majority of working drivers.
Under the updated law, overtime deductions apply only to the premium paid to employees working over 40 hours, complicating benefits for many drivers.
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