No Tax on Tips Act

This bill creates a new tax deduction that lets workers deduct up to $25,000 of their tip income from their taxes. To qualify, the tips must be cash tips from jobs that normally receive tips, and workers must report these tips to their employers. Workers who made more than $160,000 in the previous year cannot use this deduction. The bill also expands a business tax credit that employers can claim for payroll taxes they pay on employee tips to include tips from beauty services like hair care, nail care, and spa treatments.

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