Short version:
OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply.
Here’s the clean, CFO-level breakdown you can put in front of clients.
OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply.
Here’s the clean, CFO-level breakdown you can put in front of clients.