big beautiful bill, tax on tips
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The new bill will allow employees to make a tax deduction from their gross income up to $25,000 from earned tips. The tax deduction is limited to voluntary cash tips that are received by an employee. According to the bil l, tips have to be reported to an employer for purposes of withholding payroll taxes.
In the newly signed ‘Big, Beautiful Bill,’ workers will see changes on how they're taxed on tips, a major priority in President Donald Trump’s agenda.
Colo., tells “Morning in America” that the provisions in President Donald Trump’s “big, beautiful bill,” specifically ending federal taxes on overtime pay and tips, deliver on what voters were promised during Trump’s campaign.