H.R. 7870 · 118th Congress
Tip Tax Termination Act
- Stage
- In committee
- Sponsor
- Don Bacon
- Introduced
- 2024-04-05
- Latest action
- 2024-04-05 · Introduced in House
Summary
Tip Tax Termination Act
This bill excludes from gross income, for income tax purposes, eligible tips not exceeding $20,000 in a taxable year. The bill defines eligible tips as amounts received by a taxpayer while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service. This tax exclusion terminates with respect to tips received after 2028.