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Cake day: June 30th, 2023

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  • If enacted, workers could deduct all “qualified tips” from 2025 through 2028. Tips must be reported to qualify for the deduction.

    In 2023, there were roughly 4 million U.S. workers in tipped occupations, representing 2.5% of all employment, according to estimates from The Budget Lab at Yale University.

    “This is a very narrow subset of the workforce,” said Alex Muresianu, senior policy analyst at the Tax Foundation.

    “For the lowest income tipped workers, it provides no marginal benefit” Muresianu said. “It would benefit moderate to middle income workers substantially.”

    also from another article:

    limited to cash tips that workers report to employers for withholding purposes on payroll taxes.

    So many caveats it’s practically worthless.