Texas Scorecard By Emily Medeiros January 27, 2025
U.S. Sen. Ted Cruz has introduced legislation to support the Trump administration’s campaign proposal to eliminate the federal income tax on cash tips.
The “No Tax on Tips Act” would exempt tips—including cash, credit and debit card charges, and checks—from the federal income tax by allowing qualified taxpayers to claim a 100 percent deduction when filing their tipped wages.
The maximum deduction that can be made by an individual per taxable year is $25,000.
Additionally, the legislation states that no later than 90 days after it is enacted, the secretary of the Treasury Department must publish a list of occupations that traditionally and customarily received tips on or before December 31, 2023.
Cruz pushed similar legislation last summer.
More:
https://texasscorecard.com/federal/sen-cruz-introduces-legislation-to-end-taxes-on-tips/
