Millions of tipped workers — including influencers and bartenders — may now deduct up to $25,000 in tip income under a new Trump-backed tax law.
The “no tax on tips” measure applies to 68 occupations and is retroactive to January 1. Eligible workers must earn less than $150,000 annually (or $300,000 for couples). Experts urge detailed recordkeeping, since tips may not appear on W-2 forms.
The deduction expires after the 2028 tax year and is expected to have limited overall impact.
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