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No Tax on Tips: What Is Known and What Do We Still Need to Know?
A provision in the new tax law offers employees no tax on tips, so Gene Marks level sets what guidance has been provided — proposed job eligibility, the deduction limit, what taxes still must be deducted — and points to other information employers and employees will require. Gene says that employees need to be aware this is a deduction to be taken at tax filing time, that employers should be aware that state tip credit is not impacted, and they should help educate employees on the new W-2 forms that will be required in 2026. Listen to the podcast.
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The skinny
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