Here's what you need to know:
Proposed Legislation: Both the Senate and the House have advanced bills related to "no tax on tips." The Senate unanimously passed the "No Tax on Tips Act" on May 20, 2025. The House narrowly passed a larger tax cuts package, often referred to as "The One, Big, Beautiful Bill," on May 22, 2025, which also includes a "no tax on tips" provision. What it would do (if passed and signed into law): It would create a new federal income tax deduction for tips. This deduction would apply to people working in jobs that have traditionally received tips (the Treasury Department would publish a list of qualifying occupations). Only tips reported to the employer and noted on a worker's W-2 would qualify. There would be an income limit for eligibility, typically around $160,000 for 2025, which would be adjusted for inflation. The proposed deduction amount in some versions is up to $25,000 annually. The proposed deduction is generally set to expire after four years. What it would NOT do: It would not eliminate payroll taxes (Social Security and Medicare) on tips. These would still be collected. It would not eliminate state or local taxes on tips. Some states are considering their own tip tax exemptions, but this federal proposal doesn't affect them. It may not benefit all tipped workers, as some already earn too little to owe federal income tax.
House GOP Tax Plan ("The One, Big, Beautiful Bill"): This larger tax package, which passed the House on May 22, 2025, also includes a significant, temporary boost to the standard deduction for Americans 65 and older. It proposes an extra $4,000 for older adults who take the standard deduction (or $8,000 for a married couple both over 65), in effect through 2028. This bonus deduction would be subject to income limits (e.g., AGI no more than $75,000 for single filers / $150,000 for married filing jointly). These proposals aim to reduce the tax burden on seniors, with some directly targeting the taxation of Social Security benefits.
I have no problem getting rid of taxes on tips.
I have no problem getting rid of taxes
Yes!
Two big benefits to no tax on tips. Wins over many former democrats and independents to the Republican voting constituency.
Second, the tips come out of the shadows, no gateway cheating required. Plus it helps Social Security and Medicare solvency.
Reconciliation rules don’t allow changes to Social Security. So they increased the deduction for being over 65. I believe that the no taxes on Social Security will be a separate bill that the democrats will have a hard time saying no to. It will probably be capped at $150K of income for the deduction.
Bingo!
No tax on overtime is a big win for me,I might even work more of it.
The One, Big, Beautiful Bill is not even remotely what we need, but it preserves Trump's existing tax cuts and takes the first step toward eliminating income taxes and the IRS completely.
No tax on tips means exactly that. Since most restaurants now require tips be reported and deposited into the registers and they also require they be filled out on the receipts EVEN IF the customer doesn't, this bill means absolutely squat-shit. Most tip earners will be taxed like they are now.
I always tip in cash even if I pay on a card.
Far as I'm concerned, it's none of the employer's or government's business how much I tip my server, bartender, barber, etc. It's a token of appreciation for a job well done.
Current IRS rules disagree on your specific definition of cash tips.
"Cash tips include tips received from customers, charged tips (for example, credit and debit card charges) distributed to the employee by the employee's employer and tips received from other employees under any tip-sharing arrangement." This is as opposed to non-cash tips, which the IRS defines as "tickets or other items of value."
Of course, IRS is chock full of assholes, so maybe they can play verbiage games in the future, but at present tip pooling, credit/debit tips, etc all count as cash tips, and would thusly be exempt under the revision in HR 1.
I sure know a lot of trumpets in the service industries whonwill benefit.
I couldn't find anything about the $100+ seniors pay a month for Medicare coverage, is there any change there? Also, after Jan. 20, 2029 these breaks end unless renewed.
4100
They do those sunsets as a budgeting trick. It’s because the whole budget scoring process is screwed up. For example, tax cuts increase revenue, not decrease it.
Part A is free, Part B 185 a month, Supplemental Gap Ins. a few hundred and up, Supplemented Advantage crappy.
Seniors used to pay 0 till they started robbing the fund.
Oh no, they withdraw $189.00 month for Medicare part A from my SS before the deposit. I also pay $300.00 month for part B to Cigna. You don't pay for pay A if you below income level and have Medicaid.
Your Part A is free, Part B is 189, And Cigna is supplemental.
Here's a breakdown of Medicare Part A and Part B costs for 2025, along with the common types of Medicare Supplement (Medigap) plans:
Medicare Part A Costs (Hospital Insurance) - 2025 Part A helps cover inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care.
Premium: $0 for most people: This applies if you or your spouse worked and paid Medicare taxes for at least 10 years (40 quarters). $285 per month: If you worked and paid Medicare taxes for 30-39 quarters. $518 per month: If you worked and paid Medicare taxes for fewer than 30 quarters. Deductible: $1,676 per benefit period: You pay this amount before Medicare Part A starts to pay for hospital services. A benefit period begins the day you're admitted as an inpatient and ends when you haven't received inpatient hospital or skilled nursing facility care for 60 consecutive days. Coinsurance for Hospital Stays: Days 1-60: $0 after you pay your deductible. Days 61-90: $419 each day. Days 91-150: $838 each day (these are "lifetime reserve days," and you have 60 of them to use over your lifetime). Beyond day 150: You pay all costs. Skilled Nursing Facility (SNF) Coinsurance: Days 1-20: $0. Days 21-100: $209.50 each day. Beyond day 100: You pay all costs. Medicare Part B Costs (Medical Insurance) - 2025 Part B covers doctors' services, outpatient care, durable medical equipment, and many preventive services.
Standard Monthly Premium: $185.00 per month: This is the standard premium for most people. Income-Related Monthly Adjustment Amounts (IRMAA): If your modified adjusted gross income (MAGI) from your 2023 tax return exceeds certain thresholds, you'll pay a higher premium. The amount varies based on your income and tax filing status. For example: Individual income above $106,000 to $133,000 (or joint income above $212,000 to $266,000): Your Part B premium will be $259.00. Higher income tiers result in higher premiums, up to $628.90 for individuals with income $500,000 or above (or joint income $750,000 or above). Deductible: $257 per year: You pay this amount once each year before Medicare Part B starts to pay. Coinsurance: After you meet the Part B deductible, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient care, and durable medical equipment. Medicare Supplement (Medigap) Plan Types Medigap policies are sold by private companies to help pay for out-of-pocket costs that Original Medicare (Parts A and B) doesn't cover, such as deductibles, copayments, and coinsurance.
There are 10 standardized Medigap plans, identified by letters A, B, C, D, F, G, K, L, M, and N. Each plan offers a different set of benefits, although certain plans (C and F) are no longer available to those new to Medicare on or after January 1, 2020.
Here's a general overview of the common benefits covered by Medigap plans (though specific coverage varies by plan letter):
Part A Coinsurance and Hospital Costs: All Medigap plans cover 100% of Part A coinsurance and hospital costs for an additional 365 days after Medicare benefits are exhausted. Part B Coinsurance or Copayment: All Medigap plans cover at least a portion of Part B coinsurance or copayment. Some cover 100%, while others cover a percentage (e.g., Plans K and L). Blood (First 3 Pints): All Medigap plans cover the cost of the first 3 pints of blood needed for a transfusion. Part A Hospice Care Coinsurance or Copayment: All Medigap plans cover at least a portion of these costs. Skilled Nursing Facility (SNF) Care Coinsurance: Most Medigap plans cover these costs. Part A Deductible: Many Medigap plans cover the Part A deductible. Part B Deductible: Only Plans C and F (for those eligible before 2020) cover the Part B deductible. Part B Excess Charges: Some plans (F and G) cover excess charges, which are the difference between what a doctor or provider charges and the Medicare-approved amount, if the provider is allowed to charge more. Foreign Travel Emergency: Several plans (C, D, F, G, M, N) cover 80% of foreign travel emergency medical costs up to plan limits, after a deductible. Out-of-Pocket Limits: Plans K and L have out-of-pocket limits, after which the plan pays 100% of covered services for the rest of the year. Popular Plans:
Plan G: Has become very popular, especially for those new to Medicare, as it covers everything Plan F used to cover except for the Part B deductible. It also covers Part B excess charges. Plan N: Offers lower premiums but requires copayments for some office visits and emergency room visits, and does not cover Part B excess charges. Plan F (High Deductible Plan F): Still available to those eligible before 2020, this plan covers all gaps but has a high annual deductible you must meet before the plan starts paying. Plan A: The most basic Medigap plan, covering the essential gaps in Original Medicare. It's important to compare plans and premiums offered by different private insurers in your area, as costs can vary.
You are right, I just checked and I was wrong. Thank you for pointing this out. I'm totally lost on this.
As the criminals intended...
Don't you love those 15 min. GP visits.
My wife's cost is 212.00 for Medicare.