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Lifeafter70

(608 posts)

9. I read that it is only for a two year period

Reply to NowISeetheLight (Original post)

Thu Jul 3, 2025, 10:15 PM

Jul 3

In regards to tips it applies to cash tips with a 25k cap. You will still be taxed on credit card tips. Since most pay with credit cards, the majority of tips will still be taxed.

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GrapesOfWrath

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Highlight:

No Tax on Overtime & Tips - I Hope I'm Wrong [View all] NowISeetheLight Jul 3 OP

I think you are edhopper Jul 3 #1

And BOSSHOG Jul 3 #2

What percentage of tips left in cash are declared as income? MichMan Jul 3 #3

That's Rebl2 Jul 3 #4

The wages/tips still have to be reported and Social Security Taxes paid. The Bill allows a deduction from income Silent Type Jul 3 #5

Sounds right. Money under the table (i.e., not reported KPN Jul 3 #6

I don't think so FHRRK Jul 3 #7

"Or do they still plan to collect SS on the overtime and declared tips?" cadoman Jul 3 #8

I read that it is only for a two year period Lifeafter70 Jul 3 #9

Not really. The amount of Tips and Overtime that are eligible to be excluded from taxes is very small. Wiz Imp Jul 3 #10