S. 129
Creates up to $25,000 tax deduction for tips
Creates a deduction of up to $25,000 for reported cash tips, but workers whose prior-year pay topped $160,000 cannot claim it; expands an employer payroll tax credit to some beauty tips.
- Deduction is capped at $25,000
- Only reported cash tips from jobs that customarily receive tips count
- Workers with prior-year pay over $160,000, adjusted for inflation, cannot claim it
- Expands employer payroll tax credit to barbering, hair, nail, esthetics, and spa tips
Passed the Senate · House's turn