H.R. 8785, titled the "Tax Free Tips Act of 2024," seeks to change the Internal Revenue Code of 1986 so that tips given to employees are not taxed as income or employment wages. This bill would treat tips as gifts, thus excluding them from federal income tax, Social Security,...
Simple Explanation
The Tax Free Tips Act of 2024 wants to make it so when people leave tips at restaurants or other places, those tips aren't taxed by the government. This means more money might stay in the pockets of waiters and other workers who get tips.