Congress’ changes for DC taxpayers don’t affect this season, DC AG says

Legislation passed by Congress and signed by President Donald Trump to overturn part of D.C.’s tax code does not impact the current tax filing season, D.C.’s attorney general said in an opinion Tuesday.

If the opinion holds up and is not challenged, D.C. taxpayers would be able to file taxes in this tax season normally.

When Congress passed Trump’s One Big Beautiful Bill Act, the legislation affected local tax laws. Several states and D.C. decoupled, choosing not to implement some of those provisions, but Republicans moved legislation to block D.C. from doing that.

The move would have a major impact on D.C.’s budget, delaying as much as $400 million in anticipated tax revenue for D.C. Additionally, D.C. would have to cut about $600 million from the city’s budget over the next four years, potentially affecting programs related to child care and low-income tax credits.

Attorney General for D.C. Brian Schwalb issued an opinion that because Congress did not specify in its disapproval resolution that the legislation was retroactive, it does not affect the 2025 tax year and current filing season.

Because the D.C. tax code changes were passed as temporary legislation and expire in September, the District tax code would recouple with the federal tax code for the 2026 tax year, Schwalb said.

If neither the Trump administration nor Congress challenges Schwalb’s opinion, D.C. taxpayers can go about their local tax filings as normal.

        <div class="recirc-module">
        <h3 class="recirc__heading"></h3>
        <p class="recirc__subheading"></p>
                                        <div class="recirc__post">
                <div class="post__wrap">
                    <div class="post__image-wrapper">
                                                        <a data-lpos="inline-recirc-module" data-lid="Senate votes to overturn DC tax code though officials warned taxpayers may need to refile" href="https://www.nbcwashington.com/news/local/senate-votes-to-overturn-dc-tax-code-though-officials-warned-taxpayers-may-need-to-refile/4059416/">
                                                                    <img alt="" class="post__image" srcset="https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=130&h=73&crop=1&strip=all 130w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=170&h=96&crop=1&strip=all 170w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=210&h=118&crop=1&strip=all 210w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=250&h=141&crop=1&strip=all 250w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=290&h=163&crop=1&strip=all 290w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=330&h=186&crop=1&strip=all 330w" src="https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all" loading="lazy" sizes="(min-width: 768px) 166px, 124px" />
                            </a>

                                                                <span class="format-icon format-icon--video"></span>

                                                                                </div>

                    <div class="post__text">
                        <div class="post__meta">
                                                                <a data-lpos="inline-recirc-module" data-lid="Taxes" class="post__tag" href="https://www.nbcwashington.com/tag/taxes/">Taxes</a>
                                                                                                <span class="post__date post__date--has-category">
                                    Feb 12                                  </span>
                                                        </div>

                                                        <h3 class="post__title">
                                <a data-lpos="inline-recirc-module" data-lid="Senate votes to overturn DC tax code though officials warned taxpayers may need to refile" class="post__title--link" href="https://www.nbcwashington.com/news/local/senate-votes-to-overturn-dc-tax-code-though-officials-warned-taxpayers-may-need-to-refile/4059416/">
                                    Senate votes to overturn DC tax code though officials warned taxpayers may need to refile                                   </a>
                            </h3>
                                                </div>
                </div>
            </div>
                                        <div class="recirc__post">
                <div class="post__wrap">
                    <div class="post__image-wrapper">
                                                        <a data-lpos="inline-recirc-module" data-lid="U.S. House votes to overturn part of DC tax code" href="https://www.nbcwashington.com/news/local/us-house-votes-overturn-dc-tax-code/4055243/">
                                                                    <img alt="" class="post__image" srcset="https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=130&h=73&crop=1&strip=all 130w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=170&h=96&crop=1&strip=all 170w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=210&h=118&crop=1&strip=all 210w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=250&h=141&crop=1&strip=all 250w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=290&h=163&crop=1&strip=all 290w, https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all&fit=1200,675&w=330&h=186&crop=1&strip=all 330w" src="https://media.nbcwashington.com/2025/09/congress-and-dc-split-2.jpg?quality=85&strip=all" loading="lazy" sizes="(min-width: 768px) 166px, 124px" />
                            </a>

                                                                <span class="format-icon format-icon--video"></span>

                                                                                </div>

                    <div class="post__text">
                        <div class="post__meta">
                                                                <a data-lpos="inline-recirc-module" data-lid="Taxes" class="post__tag" href="https://www.nbcwashington.com/tag/taxes/">Taxes</a>
                                                                                                <span class="post__date post__date--has-category">
                                    Feb 6                                   </span>
                                                        </div>

                                                        <h3 class="post__title">
                                <a data-lpos="inline-recirc-module" data-lid="U.S. House votes to overturn part of DC tax code" class="post__title--link" href="https://www.nbcwashington.com/news/local/us-house-votes-overturn-dc-tax-code/4055243/">
                                    U.S. House votes to overturn part of DC tax code                                    </a>
                            </h3>
                                                </div>
                </div>
            </div>
                </div>

D.C. leaders warned that if congressional Republicans were successful in overturning the D.C. tax code, it would create chaos for local taxpayers.

D.C. Council Chairman Phil Mendelson said he believes the congressional review period ended before it voted to overturn provisions decoupling local taxes from tax cuts in the One Big Beautiful Bill Act.