No Tax on Tips Act

This bill allows tipped workers to deduct cash tips they report to their employers from their taxable income. It creates a new tax deduction (Section 224) for cash tips included on statements given to employers, directly benefiting service industry workers like waitstaff who receive cash tips. The deduction is available to all taxpayers (not just those who itemize deductions) and avoids being treated as a limited miscellaneous deduction under current tax rules. The changes apply to tax years starting after December 31, 2024.