Tax Free Tips Act of 2024
HR 8785, the Tax Free Tips Act of 2024, reclassifies tips as gifts rather than taxable income for workers in service industries like restaurants and hospitality. It removes tips from income tax calculations, Social Security taxes, unemployment taxes, and wage withholding requirements. The bill repeals existing rules requiring employers to report tips (Section 6053) and eliminates related tax credits (Section 45B). Tips will no longer be counted as income for tax purposes, effective for tips received after the bill's enactment date. This directly affects tipped employees by eliminating tax obligations on their gratuities.
Bill status
in committee
1 of 4 stages cleared
Introduction
Jun 2024
Committee Review
Floor Vote
President
Introduced Jun 18, 2024
Last action Jun 18, 2024
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
2
Key actions
0
Committee
1
Jun 18, 2024
Committee
Referred to the House Committee on Ways and Means.
lower
Jun 18, 2024
Introduced
Introduced in House
lower
1 primary · 9 co-sponsors
Sponsors
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