Per the Bigly Turd Bill, only the first $2500 in tips in a given year will be tax-deductible. With a full-time worker putting in 262 days a year, this means that the first $9.50 or so she is tipped in a given shift won't be taxable.
Whee!
I'll bet there are a LOT of low-info MAGAs who think they won't have to pay taxes on their tips at all.
So many broken promises!
It was a dumb idea to begin with.
Originally posted by: Jerry Ice 33
It was a dumb idea to begin with.
I agree but it was a promise made and a promise broken. No tax on tips means no tax on tips not a $2,500 deduction that lasts three years.
Originally posted by: Mark
I agree but it was a promise made and a promise broken. No tax on tips means no tax on tips not a $2,500 deduction that lasts three years.
Another Lewis lie debunked -- So, what is the OBBBA when it comes to tip income? Here’s a quick summary. A Deduction for Cash Tips: Workers in qualifying tipped occupations can now deduct up to $25,000 of those tips from their taxable income for tax years 2025 through 2028. Who’s Eligible? The deduction is available for specified workers making up to $150,000 a year ($300,000 for joint filers). The income limit will be adjusted for inflation. Which Jobs Qualify: The OBBB will target jobs where tipping is customary — think servers, bartenders, hair stylists, and nail techs. Though the U.S. Treasury Department and IRS will have to specify in later guidance which specific jobs will be eligible. Employer Benefit: The new law also expands a tax credit for certain businesses, letting them claim credits for payroll taxes paid on tips like restaurants do. Note: Now that the No Tax on Tips measure has been signed into law, the new tax deduction for cash tips takes effect for the 2025 tax year. That means eligible workers could claim the deduction when they file their taxes in early 2026 for income earned in 2025. -- https://www.kiplinger.com/taxes/no-tax-on-tips-bill-approved
Doesn't LAM ever get tired of getting caught lying? And of course mark goes for it.
From Kiplingers
A Deduction for Cash Tips: Workers in qualifying tipped occupations can now deduct up to $25,000 of those tips from their taxable income for tax years 2025 through 2028.
From Newsweek
The Senate Finance Committee's proposal would limit tax breaks on tipped income and overtime pay
The Senate plan offers the same $25,000 deduction
https://www.newsweek.com/no-tax-tips-passed-trump-tax-bill-2092989
Tom and David, so a server that makes 50k in tips, still has half her tips taxed? And she still pays Federal payroll taxes on the whole 50k? And how come it is only lasts for a few years. Sure sounds to me like there are still taxes on tips.
Originally posted by: Mark
Tom and David, so a server that makes 50k in tips, still has half her tips taxed? And she still pays Federal payroll taxes on the whole 50k? And how come it is only lasts for a few years. Sure sounds to me like there are still taxes on tips.
Under the democrats the deduction for tip income would be zero. These sunset clauses always get extended
Originally posted by: tom
Under the democrats the deduction for tip income would be zero. These sunset clauses always get extended
There's nothing special about tip income that means it shouldn't be taxed. And since both the Turd Bill and its 2018 predecessor raised income tax rates for the non-rich, people who earn tips are still worse off than if the Turd had croaked.
Yes, such a worker would still be subject to payroll taxes on her entire gross earnings, including ALL of her tips. That's the difference between an exemption and a deduction.
Of course, it is a savings, but a far, far, far cry from the "no tax on tips" lie. And it's no coincidence that it ends when the Turd's term does. That's so MAGA can make political hay out of it.
Originally posted by: Kevin Lewis
Yes, such a worker would still be subject to payroll taxes on her entire gross earnings, including ALL of her tips. That's the difference between an exemption and a deduction.
Of course, it is a savings, but a far, far, far cry from the "no tax on tips" lie. And it's no coincidence that it ends when the Turd's term does. That's so MAGA can make political hay out of it.
And there is only so much lying one liar can make before being outed by their own words. YOU have been outed AGAIN, liar.
