Summary
A new law signed by President Trump eliminates federal income taxes on tips for certain jobs, including podcasters and social media influencers. This exemption applies from 2025 to 2028 for workers earning less than $160,000 annually. The law is estimated to increase the U.S. deficit by $40 billion through 2028.
Key Facts
- The law signed by President Trump removes federal income tax on tips for specific jobs.
- The exemption period is from 2025 to 2028.
- Workers must earn less than $160,000 in 2025 to qualify.
- Jobs exempt from tax on tips include podcasters, social media influencers, golf caddies, and blackjack dealers.
- The Treasury Department released a preliminary list of qualifying professions.
- The "No Tax on Tips" provision is expected to increase the deficit by $40 billion by 2028.
- Only tips reported on a worker's W-2 form will qualify for the exemption.
- The law does not affect payroll taxes like Social Security and Medicare.
