H. R. 7870, known as the “Tip Tax Termination Act,” proposes changes to the Internal Revenue Code of 1986. This bill aims to exempt certain tips, up to $20,000 annually, from being subject to income and employment taxes for five years starting after December 31, 2023. It...
Simple Explanation
The "Tip Tax Termination Act" is a new rule that says people who get tips at their jobs, like waiters or hairdressers, don’t have to pay taxes on tips up to $20,000 each year for five years. This means they get to keep more of the money their customers give them when they do a good job!