Don’t Delay Your Taxes Hoping for a Trump Tax Cut—Here’s Why

With the rise of headlines and social media chatter around Donald Trump’s rumored plan to eliminate federal income taxes for individuals earning under $150,000, some taxpayers are wondering: Should I delay filing in case this becomes real?

Short answer? No. Here’s why you should still file—and file on time.

What’s the Rumor About?

In a recent interview, Commerce Secretary Howard Lutnick floated the idea of eliminating income tax for most middle-income Americans, particularly those making under $150,000 a year. Trump has teased this concept at rallies as part of a broader populist economic plan.

“We’re looking at cutting income taxes for middle-income Americans and replacing revenue with tariffs.”

– Source: Kiplinger

Why You Shouldn’t Wait on a Rumor:

1. It’s Just a Proposal

Nothing has been passed into law. Proposals like this require:

• Legislative approval from Congress

• A federal budget overhaul

• Time—lots of it

2. It Wouldn’t Affect 2024 Taxes

Even if passed, tax changes like this would only apply to future years, not the return due this April (covering 2024 income).

3. Missing the April 15 Deadline = Penalties

The IRS hits you with two main penalties:

• Failure to file: 5% of unpaid taxes per month (up to 25%)

• Failure to pay: 0.5% per month + interest

Source: IRS.gov - Penalties

4. The IRS Is Warning Against Extensions This Year

Due to staffing reductions, the IRS is urging people to file on time and not rely on extensions, which may take longer to process.

Source: MarketWatch

How This Rumor Is Fueling Confusion

With Dogecoin and other “meme assets” heating up and viral tweets promoting the idea that “taxes are going away,” younger and lower-income earners may assume taxes don’t apply to them. That’s a costly mistake.

Here’s the truth:

• The IRS doesn’t accept memes as legal defense

• Skipping filing can delay your refund, trigger collections, or delay ITIN renewals or child tax credits

Bottom Line: File Now, Adjust Later

• If Trump’s proposal becomes reality? Great—you’ll benefit in future years.

• But if you miss this year’s deadline, you’ll rack up penalties that no politician will cancel retroactively.

Need Help? We’re Local and Filing Fast

We specialize in helping working Californians, gig workers, and small business owners maximize their returns and avoid penalties. If you’re unsure what to do, we’ll review your documents and help you make the best move—fast.

Book a free consultation today before the April 15 deadline.