Bill > S4621

This bill, the "No Tax on Tips Act," proposes to eliminate the application of income tax on cash tips received by individuals. The key provisions include: 1. Allowing a deduction for the full amount of cash tips that are included on statements furnished to the employer under Section 6053(a) of the Internal Revenue Code. 2. Making the deduction for cash tips available to both itemizers and non-itemizers. 3. Ensuring the deduction for cash tips is not subject to the limitations on miscellaneous itemized deductions or the overall limitation on itemized deductions. 4. Requiring the Secretary of the Treasury to modify the tax withholding tables and procedures to account for the new deduction. 5. Making the amendments effective for taxable years beginning after December 31, 2024. The overall purpose of this bill is to provide relief to individuals who receive cash tips, typically service industry workers, by eliminating the income tax on those tips.