H.R. 8941, known as the "No Tax on Tips Act," aims to change the Internal Revenue Code of 1986 to allow a tax deduction for cash tips. Under this bill, individuals would be able to deduct the full amount of cash tips they report to their employers from their taxable income....
Simple Explanation
H.R. 8941 wants to let people who get cash tips, like waiters or delivery people, not pay extra taxes on those tips, so they can keep more of their money. This change would start after the year 2024, and everyone can use this rule, whether they use special tax forms or not.