Part 7/11:
Tax-Free TIP Income: If you earn from Treasury Inflation-Protected Securities (TIPS) and make under $150,000 annually, the first $25,000 of tip income is now tax-free.
Overtime Income Deduction: Workers earning overtime can benefit from a new deduction—up to $12,500 for singles and $25,000 for married couples—if their annual income is below $150,000 or $300,000, respectively.
Extension of the Tax Cuts and Jobs Act (TCJA): These tax rates and brackets, which were due to expire, have been made permanent. For 2026, individual tax brackets are as follows (simplified):
Income under ~$12,000: 10%
$12,000–$48,000: 12%
$48,000–$103,000: 22%
$103,000–$197,000: 24%
$197,000–$250,000: 32%
$250,000–$400,000: 35%
Over $626,000: 37%