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Bill > HF268
IA HF268
IA HF268A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.(See HF 1030.)
summary
Introduced
02/06/2025
02/06/2025
In Committee
02/06/2025
02/06/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill excludes from the individual income tax the amount of cash tips received and included on statements furnished to an employer as required by section 6053(a) of the Internal Revenue Code. The bill applies to tax years beginning on or after January 1, 2026.
AI Summary
This bill proposes to exempt cash tips from individual income tax in Iowa by amending the state tax code. Specifically, the bill allows taxpayers to subtract the amount of cash tips from their taxable income, provided these tips are documented on statements furnished to an employer as required by section 6053(a) of the Internal Revenue Code. This means that workers who receive cash tips, such as restaurant servers, bartenders, and other service industry employees, would not have to pay state income tax on those tips. The provision is designed to provide financial relief to workers who rely on tips as a significant part of their income. The bill will take effect for tax years beginning on or after January 1, 2026, giving taxpayers and state tax authorities time to prepare for the implementation of this new tax exemption.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Committee report approving bill, renumbered as HF 1030. (on 04/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF268 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF268.html |
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