Bill > HF3525

This bill allows individuals in Minnesota to subtract from their state taxable income the amount of "qualified tips" they receive, which is a deduction already available under federal tax law (specifically, section 224 of the Internal Revenue Code). Qualified tips are generally those tips received by an employee in the course of their employment that are in excess of the amount of tips the employee is required to report to their employer. While the federal deduction is available, this bill makes it effective for Minnesota taxpayers retroactively for taxable years beginning after December 31, 2024, even though the federal law itself has a delayed implementation for certain aspects of this deduction.