Bill > S129

This bill introduces the No Tax on Tips Act, which aims to provide tax relief for workers who receive tips by creating a new tax deduction. Specifically, the bill allows individuals to deduct up to $25,000 in qualified tips from their taxable income for any year after 2024. Qualified tips are defined as cash tips received in occupations that traditionally receive tips, with some exclusions for high-income employees. The bill requires the Treasury Secretary to publish a list of qualifying tip-based occupations within 90 days of the act's passage. Additionally, the bill extends a tax credit to beauty service establishments (including barbering, nail care, esthetics, and spa treatments) that matches the existing tip credit for food service workers, allowing employers to receive a tax credit for Social Security taxes paid on employee tips. The deduction will be available to both itemizers and non-itemizers, and it is not subject to certain typical tax deduction limitations. The provisions of this bill are set to take effect for taxable years beginning after December 31, 2024, providing a new financial benefit for tip workers across various industries.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/129/all-info