Bill > HR7870

This bill, the Tip Tax Termination Act, amends the Internal Revenue Code to exclude up to $20,000 of eligible tips received by an individual from their gross income for tax purposes. Eligible tips are defined as amounts received while performing services that typically rely on tips as part of wages, such as in cosmetology, hospitality, and food service. The bill also exempts these excluded tips from employment taxes, including Social Security, unemployment, and wage withholding taxes. The provisions are set to expire on December 31, 2028, after a 5-year period.