Menu

📰
0

Here's how much the new "no tax on tips" deduction could save you

Home - CBSNews.com·@Cbsnews·2 months ago
#YRoE4a
#cbsnews#deduction#englishlanguage
Reading 0:00
15s threshold

Locksmiths, tattoo artists and pedicab drivers are among those who could benefit from a new deduction this tax season that lowers the burden on workers who received tips as part of their income last year. Eliminating taxes on tips, accomplished through the 2025 passage of the "big, beautiful bill," allows eligible workers to deduct up to $25,000 in tips from their federal taxable income. Deductions reduce a filer's taxable income, so the new tax break will benefit workers in industries where tipping is common. The Tax Policy Center, a nonpartisan joint venture of the Urban Institute and Brookings Institution, estimates that those who claim the deduction will receive an average tax cut of around $1,400.Andrew Lautz, director of tax policy for the Bipartisan Policy Center, a nonpartisan think tank, told CBS News that some tipped workers could get an even larger tax cut depending on their income."If someone is claiming the maximum tip deduction and they are in the top tax bracket that is eligible for that…

Continue reading — create a free account

Join HashtagPLUS to read full articles, follow hashtags, vote, and join the conversation.

Read More