06/04/2025
Good News for Tip Earners!
🍳Good news might be coming for people who work for tips, like in restaurants or salons!
💸A new law called the "No Tax on Tips Act" passed in the Senate.
This law could let you keep up to $25,000 of your tips without paying federal taxes on them!
⚠️But, it's only for workers who make less than $160,000 a year.
💇🏾♂️Also, a tax break for employers on Social Security taxes for tips will now also help beauty service workers, not just food workers.
👩⚖️Even with these new changes, tip rules are tricky. If you think your tips are being handled unfairly, or you have questions about who should be in a tip pool, ask an employment lawyer for help.
Sen. Jacky Rosen, D-Nev., called up the bipartisan bill for immediate passage, and no senator objected. The measure now goes to the House.