As for the NFA, I heard today that one or a couple Gun Rights organizations are going to file a lawsuit to abolish it. I don't think there will much if any "defense"of it from the current Justice Department.

I don't know where is this "paragraph (1).''" that's being referred to. Perhaps in the actual National Firearms Act itself.

SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN
DEVICES.

(a) Transfer Tax.--Section 5811(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid on firearms
transferred a tax at the rate of--
``(1) $200 for each firearm transferred in the case of a
machinegun or a destructive device, and
``(2) $0 for any firearm transferred which is not described
in paragraph (1).''.
(b) Making Tax.--Section 5821(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid upon the
making of a firearm a tax at the rate of--
``(1) $200 for each firearm made in the case of a
machinegun or a destructive device, and
``(2) $0 for any firearm made which is not described in
paragraph (1).''.
(c) Conforming Amendment.--Section 4182(a) is amended by adding at
the end the following: ``For purposes of the preceding sentence, any
firearm described in section 5811(a)(2) shall be deemed to be a firearm
on which the tax provided by section 5811 has been paid.''
(d) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning more than 90 days after the date
of the enactment of this Act.

``SEC. 225. QUALIFIED OVERTIME COMPENSATION.

``(a) In General.--There shall be allowed as a deduction an amount
equal to the qualified overtime compensation received during the
taxable year and included on statements furnished to the individual
pursuant to section 6041(d)(4) or 6051(a)(19).
``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under
this section for any taxable year shall not exceed $12,500
($25,000 in the case of a joint return).
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount allowable as a
deduction under subsection (a) (after application of
paragraph (1)) shall be reduced (but not below zero) by
$100 for each $1,000 by which the taxpayer's modified
adjusted gross income exceeds $150,000 ($300,000 in the
case of a joint return).
``(B) Modified adjusted gross income.--For purposes
of this paragraph, the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(c) Qualified Overtime Compensation.--
``(1) In general.--For purposes of this section, the term
`qualified overtime compensation' means overtime compensation
paid to an individual required under section 7 of the Fair
Labor Standards Act of 1938 that is in excess of the regular
rate (as used in such section) at which such individual is
employed.
``(2) Exclusions.--Such term shall not include any
qualified tip (as defined in section 224(d)).
``(d) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year such individual's social security number.
``(2) Social security number defined.--For purposes of
paragraph (1), the term `social security number' shall have the
meaning given such term in section 24(h)(7).
``(e) Married Individuals.--If the taxpayer is a married individual
(within the meaning of section 7703), this section shall apply only if
the taxpayer and the taxpayer's spouse file a joint return for the
taxable year.
``(f) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance to
prevent abuse of the deduction allowed by this section.
``(g) Termination.--No deduction shall be allowed under this
section for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended
by the preceding provisions of this Act, is amended by striking ``and''
at the end of paragraph (4), by striking the period at the end of
paragraph (5) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(6) the deduction provided in section 225.''.
(c) Reporting.--
(1) Requirement to include overtime compensation on w-2.--
Section 6051(a), as amended by the preceding provision of this
Act, is amended by striking ``and'' at the end of paragraph
(17), by striking the period at the end of paragraph (18) and
inserting ``, and'', and by inserting after paragraph (18) the
following new paragraph:
``(19) the total amount of qualified overtime compensation
(as defined in section 225(c)).''.
(2) Payments to persons not treated as employees under tax
laws.--
(A) Statement furnished to secretary.--Section
6041(a), as amended by section 70201(e)(1)(A), is
amended by inserting ``and a separate accounting of any
amount of qualified overtime compensation (as defined
in section 225(c))'' after ``occupation of the person
receiving such tips''.
(B) Statement furnished to payee.--Section 6041(d),
as amended by section 70201(e)(1)(B), is amended by
striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and
inserting ``, and'', and by inserting after paragraph
(3) the following new paragraph:
``(4) the portion of payments that are qualified overtime
compensation (as defined in section 225(c)).''.
(d) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (X), by striking the period at the end of
subparagraph (Y) and inserting ``, and'', and by inserting after
subparagraph (Y) the following new subparagraph:
``(Z) an omission of a correct social security
number required under section 225(d) (relating to
deduction for qualified overtime).''.
(e) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1, as amended by the preceding provisions of
this Act, is amended by redesignating the item relating to section 225
as an item relating to section 226 and by inserting after the item
relating to section 224 the following new item:

``Sec. 225. Qualified overtime compensation.''.
(f) Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the procedures prescribed under section 3402(a)
of the Internal Revenue Code of 1986 for taxable years beginning after
December 31, 2025, to take into account the deduction allowed under
section 225 of such Code (as added by this Act).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(h) Transition Rule.--In the case of qualified overtime
compensation required to be reported for periods before January 1,
2026, persons required to file returns or statements under section
6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of
1986 (as amended by this section) may approximate a separate accounting
of amounts designated as qualified overtime compensation by any
reasonable method specified by the Secretary.

quote:

Originally posted by parabellum:
I don't know where is this "paragraph (1).''" that's being referred to. Perhaps in the actual National Firearms Act itself.

SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN
DEVICES.


(d) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning more than 90 days after the date
of the enactment of this Act.

So what the hell does this even mean? So the tax is still on for now long?

quote:

Originally posted by am94pm:

quote:

Originally posted by parabellum:
I don't know where is this "paragraph (1).''" that's being referred to. Perhaps in the actual National Firearms Act itself.

SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN
DEVICES.


(d) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning more than 90 days after the date
of the enactment of this Act.

So what the hell does this even mean? So the tax is still on for now long?

Yes, it will not go into effect till Oct. 90 days from Presidential signing date.

This is paragraph (1):
(1) $200 for each firearm transferred in the case of a machinegun or a destructive device, and

January 1, 2026 is the first day of the quarter "beginning more than 90 days after the date
of the enactment of this Act", so it's not effective until that date.

quote:

Originally posted by Ronin101:
``SEC. 225. QUALIFIED OVERTIME COMPENSATION.

I'm under the AGI limit, but over the max write off. But a 12,500 write off equals $3,000 less in taxes for me.... Hopefully.

I really hope this AI summary is accurate, because I qualify then.

SEC. 225. Qualified Overtime Compensation — Summary
Overview
Section 225 of the recently passed bill creates a new federal income tax deduction for "qualified overtime compensation." This provision is designed to reduce the tax burden on workers who earn overtime pay, fulfilling a major campaign promise to make overtime earnings tax-free for many Americans.

Key Provisions
Deduction Amount:
Workers may deduct up to $12,500 of qualified overtime pay per year from their taxable income. For joint filers, the cap is $25,000 per year.

Definition of Qualified Overtime:
Overtime pay that is required under section 7 of the Fair Labor Standards Act (FLSA)—that is, pay for hours worked beyond 40 in a week at a rate above the regular hourly wage—qualifies for the deduction. Tips are specifically excluded from this section and are covered by a separate provision.

Eligibility and Phase-Out:

The deduction begins to phase out for taxpayers with a modified adjusted gross income (MAGI) above $150,000 ($300,000 for joint filers).

The deduction is reduced by $100 for every $1,000 of MAGI above the threshold, and is eliminated entirely at $275,000 ($550,000 for joint filers).

To claim the deduction, the taxpayer must include their Social Security number (and, if married, their spouse’s) on the tax return.

Reporting Requirements:
Employers must report the total amount of qualified overtime compensation on employees’ W-2 forms. The Senate version also requires similar reporting for independent contractors on 1099 forms, though this is largely technical as most contractors are not eligible for overtime under the FLSA.

Above-the-Line Deduction:
The deduction is available to all eligible taxpayers, regardless of whether they itemize or take the standard deduction.

Effective Dates and Sunset:
The deduction applies to tax years beginning after December 31, 2024, and is set to expire after 2028 unless extended by future legislation.

Additional Notes
The provision is part of a broader package that also includes tax relief for tips and Social Security income.

The deduction is intended to increase take-home pay for millions of workers who regularly earn overtime, though its impact is limited by the income phase-out and the temporary nature of the provision.

Looks like a stock I cashed out will cost me this write off... ;(

How Capital Gains Affect MAGI
Capital gains—the profits from selling assets like stocks, bonds, or real estate—are part of your taxable income.

These gains are first included in your Adjusted Gross Income (AGI), which is the starting point for calculating MAGI.

Since MAGI is generally your AGI with certain deductions added back, any realized capital gains will increase your MAGI.

Why This Matters for the Overtime Deduction
The phase-out for the qualified overtime compensation deduction is based on your MAGI.

If you have significant capital gains, they can push your MAGI above the phase-out threshold ($150,000 for single filers, $300,000 for joint filers), reducing or eliminating your ability to claim the deduction.

Received this email last night from Social Security. Assuming it is real.


Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors

The Social Security Administration (SSA) is celebrating the passage of the One Big, Beautiful Bill, a landmark piece of legislation that delivers long-awaited tax relief to millions of older Americans.

The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation's economy.

“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned."

The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.

Social Security remains committed to providing timely, accurate information to the public and will continue working closely with federal partners to ensure beneficiaries understand how this legislation may affect them.

It’s real.

I just checked my email. I got one also.

Me too.

The SSA announcement is extremely short on details. What will be the MAGI cutoff for not paying the tax? Will those taxpayers still affected pay a lower amount or still mostly stuck at 85%?

I would be curious if the bill addresses any fixes to the (ponzi scheme) Social Security program.

What is the exact wording in the bill that says or shows that we, the 90% of seniors drawing SS, wont have to pay taxes on our SS income any longer?

https://www.newsmax.com/newsma...dkt_nbr=010504msvl2y

Speaker Johnson to Newsmax: OBBB Most Conservative Bill of Our Lifetime

House Speaker Mike Johnson, R-La., told Newsmax on Thursday the One Big Beautiful Bill Act that Congress sent to President Donald Trump to sign into law is "the most conservative legislation of our lifetime."

The House passed the bill Thursday by a 218-214 vote, with just two Republicans – Reps. Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania – joining all Democrats in opposition. The vote occurred after a contentious two days of debate without any changes to the Senate's amended version, which needed a tiebreaking vote by Vice President JD Vance on Tuesday to keep the bill afloat.

"It was dicey, honestly, along the way, but I never did take my eye off that prize," Johnson told Newsmax host Rob Finnerty. "And I believed that this group could deliver this big agenda. The one, big, beautiful bill. I mean, really, this is about 90% of the America First agenda all lobbed into one giant piece of legislation. We wanted to go big. We wanted to go early. We did it, I think, in probably record time, certainly for a piece of legislation this large and comprehensive and complex.

"But we got it delivered. You know why? Because, Rob, I believe in my colleagues. The American people have sent some courageous patriotic Republicans to Congress. They all believe deeply in their heart and that America First agenda. And they want to put America first again. This legislation is arguably the most conservative legislation of our lifetime, and we got it done."

Johnson said he wasn't surprised every Democrat in the House and Senate opposed the legislation, which makes Trump's 2017 tax cuts permanent, with temporary new tax breaks for overtime pay, tips, and an increased standard deduction for seniors. It also boosts funding for defense, immigration enforcement, and border security while making modest reforms to social safety-net programs such as Medicaid and the Supplemental Nutrition Assistance Program.

"Look, this is not your father's Democratic Party," Johnson said. "They've gone far woke, progressive left, and they don't seem to be able to recognize they've got to turn and come back to the center. They're going further and further left. You see that with candidates that are emerging around the country and some of the actions and antics that they've done on the House floor, as they did today.

"They don't seem to recognize that they're committing political suicide for their party. Meanwhile, Republicans are not into pageantry or performance. We are delivering results, and that's what we did today."

https://www.theepochtimes.com/...kSerSTNFHH9%2B8co%3D

Congress Has Passed Trump’s Big Beautiful Bill—What’s in It?

The president’s signature policy bill implements tax cuts, reforms Medicaid and food programs, and boosts spending for the border and defense.

Congress passed the One Big Beautiful Bill Act on July 3.
The mammoth bill, which is more than 940 pages, was the result of weeks of intraparty and bicameral negotiations among House and Senate Republicans.
Once signed by the president, the legislation will implement sweeping changes to U.S. policy and funding over a 10-year period in order to carry out President Donald Trump’s second-term agenda.

That includes making the 2017 tax cuts permanent; tax breaks on tips, overtime, and Social Security income; completing the border wall; $150 billion in defense spending; and repealing so-called green energy tax credits.
Here are the main components of the bill.
2017 Tax Cuts Extended

The centerpiece of the legislation is its extension of the tax cuts initially included in the Tax Cuts and Jobs Act of 2017 during Trump’s first term in office.
That law slashed marginal tax rates across the board, with most brackets seeing around a 2 percent to 4 percent cut. If these cuts aren’t extended, tax rates will return to their pre-2017 levels at the end of fiscal 2025 on Sept. 30—an eventuality that Republicans are anxious to avoid.
Child Tax Credit Boosted

The bill would boost the child tax credit from $2,000 to $2,200, and make the credit permanent.

Taxes on Overtime, Car Loans, Tips Reduced

The bill would implement some of Trump’s core campaign promises on tax policy, reducing taxes on tips, overtime pay, and car loans.

Taxpayers would be allowed to deduct the first $25,000 in income earned from tips; up to $12,500 in income from overtime pay for single filers or up to $25,000 for joint filers; and up to $10,000 of car loan interest on American-made vehicles.

$6,000 Social Security Deduction for Seniors

Instead of Trump’s “no taxes on Social Security,” the bill would allow seniors to deduct $6,000 of their Social Security income, with that amount decreasing once income passes $75,000 for single filers or $150,000 for joint filers.
Single filers who make $175,000 or more, or joint filers with an income of over $250,000, will not be eligible for the deduction.
Funding Immigration and Border Security

The legislation would dedicate $150 billion toward immigration enforcement in line with some of the core promises Trump made on the campaign trail.
That includes nearly $30 billion for Immigration and Customs Enforcement, the agency largely responsible for carrying out Trump’s mass deportation operation, alongside $13.5 billion in grants for state and local governments who assist with the effort. The bill allocates $45 billion for the detention of illegal immigrants.

Another $46.5 billion is dedicated to the construction of a wall along the U.S.–Mexico border.

The funding will cover expenditures through the end of fiscal 2029.

Defense

The bill would appropriate $157 billion toward defense, with $29 billion going toward enhancing U.S. maritime capabilities and shipbuilding, $25 billion slated for munitions, and $25 billion dedicated to the “Golden Dome“ missile defense project.
The funding will cover expenditures through the end of fiscal 2029.
Clean Energy Tax Credit Cuts

Several clean energy tax credits included in the Inflation Reduction Act are being cut, beginning as early as 2025.

The electric vehicle tax credit would end on Sept. 30. Other clean energy projects, including hydrogen, wind, and solar, would need to be online by either Dec. 31, 2027, or Jan. 1, 2028, depending on the type of project, to retain their tax credits.

Medicaid and Rural Hospitals

The bill would seek to reduce Medicaid spending by imposing an 80-hour monthly work requirement for able-bodied adults to receive benefits.
It also reduces the “provider tax”—the rate at which states tax hospitals and doctors to pay for their Medicaid programs—from 6 percent to 3.5 percent in states that expanded Medicaid under the Affordable Care Act. Ten states that didn’t expand their programs will see no changes.

To offset fears that these changes would harm rural hospitals, the bill allocates $50 billion to support such facilities.

The bill would block abortion clinics from receiving Medicaid funding for one year.

SNAP Cuts

The bill would, for the first time, require states to contribute to the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. The amount would vary based on a state’s payment error rate, but would fall between 5 percent and 15 percent.
However, Alaska and Hawaii can apply for a waiver from this provision if they are making a good-faith effort to reduce their error rates.

It would also increase states’ share of administrative costs to 75 percent, up from the current 50 percent rate.

$5 Trillion Debt Ceiling Increase

The bill would increase the U.S. debt ceiling by $5 trillion. This provision is one of the most pressing items in the bill as the Treasury approaches a default sometime in the coming months.
Paul and House conservatives have been outspoken in their opposition to such a steep increase in the debt limit.

$40,000 SALT Cap

One of the most divisive issues in crafting the bill has been the state and local tax (SALT) deduction, which was capped at $10,000 in the Tax Cuts and Jobs Act of 2017. The Senate bill will increase that cap to $40,000 annually, increasing by 1 percent for five years instead of the 10 years initially sought by its supporters as a compromise. Beginning in 2030, the cap will return to $10,000.
SALT allows tax payers to deduct a portion of their state and local taxes from their federal taxable income. The program is controversial with conservatives, who view it as favoring blue state taxpayers over those in comparably low-tax red states.

However, House moderates like Rep. Mike Lawler (R-N.Y.) have made an increased SALT cap a redline to win their vote.

Education Policies Tweaked

The bill would make several tweaks to federal education policy.
It would reduce Pell Grant eligibility for high-income students and students with a full ride. It proposes two federal student loan repayment plans, including one traditional repayment plan and one income-based repayment plan.

Additionally, it would tax college and university endowments at a variable rate—either 1.4 percent, 4 percent, or 8 percent—based on the institutions’ wealth.

What Was Cut

The Senate’s nonpartisan referee, parliamentarian Elizabeth MacDonough, ruled that many provisions in earlier Senate committee drafts of the legislation were ineligible for passage under the filibuster-proof reconciliation process. Had they not been cut, Republicans would need 60 votes to pass the bill.
Those provisions included one empowering states to enforce immigration law, multiple provisions related to the federal workforce, and a provision financially rewarding cost-cutting measures by government agencies.

Sen. Mike Lee’s (R-Utah) proposal to sell off federal lands, which caused a firestorm of controversy online, was also left out.

Another proposal to cut the $200 excise tax, and regulations on silencers and certain types of firearms, was also ruled ineligible for the reconciliation process.

During an amendment vote in the Senate, senators voted 99-1 to remove a 10-year ban on states from regulating artificial intelligence.

Republicans also removed a measure, dubbed a “revenge tax,” that would have let Trump impose taxes on foreign companies from nations that tax U.S. firms. Treasury Secretary Scott Bessent said that after negotiations, the provision was no longer necessary.
MacDonough also rejected a pay cut for Federal Reserve employees and a repeal of programs authorized by the Biden-era Inflation Reduction Act, among other rulings that would have to pass through the chamber as regular bills.

Does this mean that if I receive $36000 in SS benefits, that I would only be taxed on $30000 of it?

quote:

Originally posted by jgerge222:
Does this mean that if I receive $36000 in SS benefits, that I would only be taxed on $30000 of it?

I believe yes, sort of.

Right now you calculate a provisional AGI to determine how much of your SS will be taxable. From there you calculate your actual AGI, then subtract out deductions to get to a final taxable amount.

The new $6000 deduction will, I think, apply as part of the deductions to reduce your total taxable amount. Or, one article last week seemed to describe it as an increased exemption.

In effect, so far, it appears it does reduce your taxable income by $6k. Will it apply directly to the calculation of Provisional Income? Idk.

If your other income is above thresholds, more and more of your SS is included, plus the marginal tax rate increases. It seems to me that these are the few "rich" they say will not benefit, and it looks like a steep penalty curve for those people.

I hope the details are made clear soon so we can make informed tax decisions. ROTH conversions, capital gains or loss harvesting, etc.

So our tax attorneys and accountants will figure out the new laws, and NO taxes on S.S. turned into something more confusing for normal minded curmudgeons?