Bill > H3172

This bill proposes changes to Massachusetts tax law regarding tipped wages, specifically by first defining "tipped wage" and then creating a tax deduction for these earnings. The bill defines "tipped wage" as any money given as a gratuity or acknowledgment of service performed by wait staff, service employees, or service bartenders, which includes amounts designated by credit card patrons and gifts. Under the proposed legislation, taxpayers would be allowed to deduct an amount equal to their total tipped wages earned during the taxable year from their state income tax liability. This means that tips received by service industry workers would effectively become tax-exempt, potentially providing significant financial relief for workers in industries like restaurants, bars, and other service-oriented businesses where tips are a substantial part of compensation. The bill represents an effort to provide additional economic support to workers who rely heavily on tips as part of their income.

Budget and Finance

https://malegislature.gov/Bills/194/H3172