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In reply to the discussion: Senate unanimously approves bill to create tax deduction for cash tips [View all]creeksneakers2
(7,697 posts)Other reports just say cash tips and here's what the bill says: —There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).
The employee usually doesn't report their charge tips because they go through the employer to begin with so the employer already knows what they are. Check go to straight to the house too. Those reports are just for cash. Elsewhere the bill just says cash.
" a)Reports by employees
Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary."
Cash tips are only a small fraction of tip income. The bill also says the cabal still has to come out with a list of what professions qualify. Will they include cab drivers? How knows?
https://www.congress.gov/119/bills/s129/BILLS-119s129is.pdf
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