S4621-118

1. Short title This Act may be cited as the No Tax on Tips Act.

2. Deduction for cash tips Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: There shall be allowed as a deduction an amount equal to the cash tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a). The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: Section 63(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting and, and by adding at the end the following new paragraph: the deduction provided in section 224. Section 67(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting , and, and by adding at the end the following new paragraph: the deduction under section 224 (relating to cash tips). Section 68(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting , and, and by adding at the end the following new paragraph: the deduction under section 224 (relating to cash tips). The Secretary of the Treasury (or the Secretary's delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account the deduction allowed under section 224 of such Code (as added by this Act). The amendments made by this section shall apply to taxable years beginning after December 31, 2024. 224.Cash tipsThere shall be allowed as a deduction an amount equal to the cash tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a). . Sec. 224. Cash tips.. (5)the deduction provided in section 224.. (13)the deduction under section 224 (relating to cash tips).. (4)the deduction under section 224 (relating to cash tips)..

224. Cash tips There shall be allowed as a deduction an amount equal to the cash tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).