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PSA: the "No Tax On Tips" provision expires:

> New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.

* https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-...

There's also a maximum of $25k/year (~$2k/mo).

"Would you like to leave a tip for your server?" "20%."

"And the cook?" "What?"

"The cook wants in on the no-tax-on-tips so we're asking how much you'd like to tip him. We're also going to ask for the cleaner and the guy who delivered the ingredients earlier this morning."

I think one aspect that is understated: "No Tax on Tips" is only a deduction for the purposes of federal income tax. W-2 workers still owe FICA and other payroll taxes on such income, and similarly self-employed workers would still owe self-employment tax.

To me, a more appropriate name is "Some taxes on tips".

I’m more concerned with no tip on taxes. Sales tax is usually in the subtotal that tip percentage are calculated on. Most POS I’ve seen do this way

> The act also provides that tips do not qualify for the deduction if they are received “in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics,”

So buskers have to declare their tips, but servers don't?

I don't like the idea of even more expectations for tips, since we're already tip-fatigued. Despite that, I'd rather have less rules and taxes and have them actually enforced than have a situation where people pocket the cash portion of their tips untaxed anyway, which only punishes honest people.

No tax on tips is the kind of policy you’d come up with if you were creating a caricature of the far left.

And yet, in today’s America that’s the major economic policy of the leader of the Republican Party.

$1 subscription, but "This content is only available for my top 1,000,000 fans" ranked by tips.

"no tax on tips" was a pandering move to the mostly financially-illiterate populace that still don't understand progressive tax systems. Singling out certain types of income makes no sense and is very unfair. I wouldn't be surprised if this actually ends up resulting in less tip income over the long term due to people going "wait my income is taxed but theirs isn't, why should I tip as much?"

So I can do a deal for $1 then ask someone to pay the other $100k in tips?

I use "tipping" in my Hacker News app Hack. Basically users can tip an amount they pick. Would such "no tax on tips" apply to that too?

Does the opposite movement exist?

Like "No Tips".

Pay your employees, pay your taxes.

No nonsense on dividing tips between people that I did not interact with, minimum tipping, or with automated machines.

Tipping also means that if I want to know how much I'll spend in your restaurant I will have to decide how much I tip even before I walk in.

This is all just tax evasion with extra steps, enabling exploiting of people that have less contractual power.

In my book, asking for a tip is called begging. A tip is voluntary.

Okay, so if I had some employees working jobs that are part of this, could I give them a tip? Could I give them 25000 dollars of tax free tip.

"No Tax On Tips" is so stupidly regressive and yet another addition to the complex tax law. Somehow we decided a waiter making 100k with tips needs more help than a stock worker at Walmart.

Truly bizarre how this is playing out - was the digital creator carve out requested by the various right wing streamers that are part of Trumps’s core sycophant club? Doesn’t make any sense.

Oh nice, congrats to all US digital creators.

Great, another way companies can offload the responsibility of looking after their staff to the customer.

It sounds like a win for the employee, "ah but you don't need to pay tax on your tips". But in reality it's government saying "The company you work for owes you nothing, take it from the customer".

Love this. Step in the correct direction. Property Taxes are coming under fire next, and given their long racist history, it's about time.

of course this administration did something that help sites like only fans.

"No Tax on Tips" meant for low income taxpayers so most of the major digital creators won't qualify.

Low income digital creators can deduct upto 25k in tips, so if their income from tips and other sources is below $150k a year, their taxable income will be 25k less.

why havent nurses and doctors (ya know, actual life savers) been historically tipped? whats so special about waitresses?