No tax on tips? Not exactly.


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Posted by mh on July 09, 2025 at 10:49:28

In Reply to: Son of US soldier born on military base deported posted by mh on July 09, 2025 at 10:40:53

Workers will still be taxed on tips. The only change is that, come tax time, they’ll be able to deduct up to $25,000 in tips from their income—assuming they make less than $150,000 overall. For someone who qualifies for the full deduction and makes enough to land in the 22-24% tax bracket, the savings might land somewhere between $5,000 and $6,000.

That’s not nothing. But it’s a far cry from what was promised.



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