Treasury Issues Official Guidance On “No Tax On Tips”—Who’s In And Who’s Out?
PositiveFinancial Markets

The Treasury has announced that starting in 2025, tipped workers will be able to deduct up to $25,000 in tips, a significant financial relief for many in the service industry. This new guidance aims to clarify the rules surrounding this deduction, ensuring that workers can benefit from their hard-earned tips without confusion. This change is important as it recognizes the contributions of tipped workers and provides them with a fairer tax treatment, potentially improving their financial stability.
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