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Impact of 'No Tax on Tips Act' on service worker income reporting by 2026?
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Ted Cruz•Rick Scott•Jacky Rosen•Catherine Cortez Masto•Steve Daines•Pete Ricketts•Vern Buchanan•Byron Donalds•Donald Trump
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Cruz and Scott Reintroduce 'No Tax on Tips Act' to Exempt Tips from Federal Income Taxes for Wages Up to $25,000
Jan 16, 2025, 09:16 PM
Senators Ted Cruz and Rick Scott have reintroduced the 'No Tax on Tips Act', which aims to exempt tips from federal income taxes. The proposed legislation allows service industry workers to claim a 100% deduction for cash and non-cash tips on wages up to $25,000. The bipartisan effort is supported by Senators Jacky Rosen, Catherine Cortez Masto, Steve Daines, and Pete Ricketts, along with Representatives Vern Buchanan and Byron Donalds. This initiative is part of a broader effort to provide financial relief to workers amid rising costs and inflation. The legislation aligns with President-elect Donald Trump's campaign promise to eliminate taxes on tips, reflecting a commitment to supporting the service and hospitality sectors.
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