Bill > HR482

This bill introduces the "No Tax on Tips Act," which aims to eliminate income tax on tips for workers in certain occupations. Specifically, the bill creates a new tax deduction for "qualified tips" up to $25,000 per year for employees in occupations that traditionally receive tips as of December 31, 2023. The Internal Revenue Service (IRS) will be required to publish a list of these eligible occupations within 90 days of the bill's enactment. The deduction will be available to both itemizers and non-itemizers, and will not be subject to certain tax limitations that typically apply to other deductions. Additionally, the bill extends a tax credit for employers' Social Security taxes to include beauty service establishments, defining beauty services to include barbering, hair care, nail care, esthetics, and body and spa treatments. These changes would take effect for taxable years beginning after December 31, 2024, providing tax relief for tip-earning workers and expanding tax benefits for employers in service industries.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/482/all-info