Farmers Tax Break Has Everyone Talking—but Do Other Filers Benefit Too?
The farmers tax break is getting attention, but many wonder if they'll see relief too
Key Takeaways
- The act eliminates taxes on tips, overtime and Social Security for eligible Americans.
- Farmers, seniors, small business owners and hourly workers all qualify for the cuts.
- The IRS will automatically enroll filers in whatever tax breaks they qualify for.
When President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law last year, many Americans were curious about one part: The Working Families Tax Cut Act, which created several new tax deductions for millions of Americans, including farmers, seniors and small business owners. And now that Tax Day is finally upon us, people are wondering how exactly the Working Families Tax Cut Act will affect them. Below, we share everything there is to know about the bill, including why people are starting to worry that only farmers will feel the benefits this year.
What is the Working Families Tax Cut Act?
The Working Families Tax Cut Act was signed into law in July 2025 and was designed to be a more permanent version of the 2017 Tax Cuts and Jobs Act (TCJA).
In the Working Families Tax Cut Act, Americans were expected to see an increased average tax refund and no tax on tips, overtime and Social Security. It also gave American farmers a break on their annual taxes and added a permanent 20 percent deduction for all small businesses and gave farmers a 20 percent Qualified Business Income deduction.
“The Working Families Tax Cuts are about opening the books for the American people,” Treasury Secretary Scott Bessent said in a statement at the time. “We want Americans to see exactly how President Trump’s policies will strengthen small businesses, allow workers to keep more of their hard-earned money and spur economic growth.”
Following the signing of the act, Americans began to wonder when they would feel the effects. And while there is still no official timeline, it’s easier to predict now that we’re just two weeks away from Tax Day. Once Americans file their taxes, they should be able to see the deductions reflected in the amount they pay or received from the Internal Revenue Services (IRS).
“Halfway through this filing season, the Working Families Tax Cuts are already delivering meaningful relief to middle- and low-income taxpayers, increasing after-tax income and putting more money back into the pockets of American families, workers and small business owners,” Secretary Bessent said in a statement in March. “[The] Treasury [department] and the IRS have worked tirelessly to ensure that relief was delivered efficiently, securely and on time. This filing season reflects our commitment to making the tax system work for working families. Because of the landmark legislation signed into law by President Trump, millions of Americans are keeping more of what they earn and seeing their paychecks go further than ever before.”
Why Americans are concerned that only farmers will be seeing the tax cuts
Despite the Working Families Tax Cut Act being available to many Americans, questions are now being raised regarding eligibility. This came after The White House posted a carousel on Instagram over the weekend highlighting the benefits of the bill for farmers. The post also highlighted other resources available only to farmers.
The post didn’t call out any other groups that benefit from the tax break, which caused people to wonder who still qualifies for the Working Families Tax Cut Act. Prior to this post, The White House has included all groups, not just farmers, when speaking of the Working Families Tax Cut Act.
“President Donald J. Trump is DELIVERING BIG for America’s farmers and ranchers,” part of the caption read.
Still, the law’s provisions aren’t limited to farmers—eligible seniors, tipped and overtime workers and small business owners should still receive their tax benefits when they file.
How to qualify for the Working Families Tax Cut Act
To qualify for the Working Families Tax Cut Act, you must be one of the following: a farmer, a Social Security beneficiary, a small business owner or an hourly worker who earns tips and/or overtime.
There is also a $2,200 Child Tax Credit deduction available to parents and guardians who earn less than $200,000 as a single filer or $400,000 or as joint filers and have at least one child under the age of 17. This credit does have income phase-outs though, and might begin to decrease depending on one’s salary.
To claim any benefits under the Working Families Tax Cut Act, include your Social Security number (or ITIN) on your federal and state tax returns and accurately report any applicable details—such as whether you’re a senior collecting Social Security, a farmer, a parent/guardian claiming a child or a small business owner. The IRS will then review your return and apply any credits or deductions you qualify for.
When it comes to the Child Tax Credit deduction, some states, including Washington and New York, have an additional form that needs to be filled out to claim that decision. For more information on that, and to see if your state also has that rule, visit your state’s Treasury website.
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