An emergency bill passed in Washington, DC, axing key tax breaks touted in the One Big Beautiful Bill Act for its residents, highlights why Americans should pay attention to state tax laws, experts said.

To address an expected $1 billion revenue loss over the next three years due to lost federal government-related jobs, Washington's city council passed an emergency tax bill this month decoupling parts of its tax code from recent federal tax changes under President Donald Trump's signature tax and spending law. Among the changes, it's removing local income tax savings tied to the new no-tax-on-tips deduction and the $6,000 bonus senior deduction . That means district residents who qualify for these federal tax breaks won't be able to claim them on their local tax returns and will

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