Understanding the “No Tax on Tips” Myth The phrase “No Tax on Tips Act” is a misnomer. There isn’t a federal law that eliminates taxes on tips entirely. The reality is far more nuanced. While there aren’t specific taxes *directly* levied on tips received by employees, tips are considered income and are subject to both … Read more
No Tax on Cash Tips? Unraveling the Complexities of Cash Income and Reporting The Alluring Myth of Untaxed Cash Tips The idea of receiving cash tips without the hassle of taxes is undeniably appealing. For many, especially those working in service industries like restaurants, bars, and salons, the promise of untaxed income feels like a … Read more
Did the Senate Pass a Bill to Eliminate Taxes on Tips? Unpacking the Truth The question of whether the Senate has passed legislation to eliminate taxes on tips is a complex one, often fueled by misinformation and misunderstandings. The short answer is: no, the Senate has not passed a bill to completely eliminate taxes on … Read more
