Washington (AP) – Golf caddy, blackjack dealer, house painter, Trump administration A reserve list of occupations that don’t require you to pay income taxes on their tips, based on the Republican new tax cuts and spending bills.
A little more unexpected? Podcasters and social media influencers are also excluded from forking some of the tips. list It was released by the Ministry of Finance on Tuesday.
Provisions of laws signed by the President Donald Trump July eliminates federal income tax on tips for people working at work that were traditionally received. It is temporary and will run from 2025 to 2028. Applies to people under $160,000 in 2025.
Yale Budget Lab estimates that it is Approximately 4 million workers The occupation in 2023 represents approximately 2.5% of all employment.
The administration had to publish a list of qualified occupations within 90 days of signing the bill. Complete list of occupations It is located on the Ministry of Finance’s website.
They fall into eight categories, including beverages and food services. Entertainment and events. Hospitality and guest service. Home Services; Personal Services; Personal Appearance and Wellness; Recreation and Guidance; Transport and Delivery.
Other jobs exempt from tip tax include sommelier, cocktail waiter, pastry chef, cake baker, bingo worker, club dancer, DJ, clown, streamer, online video creator, lead, maid, gardener, electrician, house cleaner, tow truck driver, personal care planner, massage aid, massage, oul pair, oul pair, oul pair, oul pair, oul skydiving pilot, ski instructor, parking garage attendant, delivery driver, mover.
A report from the Budget Lab shows that the impact of the law is small given that cutting-edge workers tend to have lower incomes. Over 37%, or more than a third of sloping workers, earned incomes low enough to not face federal income tax in 2022.
“The larger and far more uncertain effects will be attributed to changes in behavior incentivized by the bill, such as increasing the overall costs of the bill, such as employment tilt and replacing advanced income,” says a report written by Ernie Tedesci, director of economics at Budget Lab.
Congressional budget analysts project the “no tax on tips” provision to increase the deficit by $40 billion by 2028. Estimated in June The TIPS deduction costs $32 billion over a decade.
Only tips reported to employers are noted and qualified in W-2 for workers, year-end tax summary. Payroll taxes paid to Social Security and Medicare are collected along with state and local taxes.
The vote shows that Americans have panned the big bill. According to a poll from the US, half of adults expect new tax laws to help the rich Associated Press-NORC Civil Service Research Center. Most – about six in ten minutes – think they can hurt low-income people more than helping them.
