electED.

HR 558 · 119th Congress — Tip Tax Termination Act

Tip Tax Termination Act  This bill excludes from gross income for federal tax purposes up to $20,000 of eligible tips received during the tax year. The bill also requires the Internal Revenue Service to modify the tables…

Congress
119
Bill
HR 558
Status
Introduced
Introduced
2025-01-20
Latest action date
2025-01-20

Summary

Tip Tax Termination Act  This bill excludes from gross income for federal tax purposes up to $20,000 of eligible tips received during the tax year. The bill also requires the Internal Revenue Service to modify the tables and procedures used to withhold federal income tax from wages to take into account eligible tips excluded from gross income.  The bill defines  eligible tips as amounts received while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service. Further, under the bill, the amount of eligible tips excluded from gross income must not be included in determining federal tax deductions or credits, except for purposes of calculating the child tax credit and earned income tax credit. Finally, the exclusion from gross income only applies to eligible tips received before 2030.

This summary may describe an earlier version. Check the official record for current wording.

Latest action

Referred to the House Committee on Ways and Means.

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