Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) helped reintroduce the No Tax on Tips Act to exempt tipped wages from federal income tax. Nevada has the highest concentration of tipped workers in the nation, and all cash and non-cash tips are currently subject to federal taxes. This bipartisan legislation will allow workers to keep their tips without paying federal income tax on them.
“Working families in Nevada deserve a break, and this bipartisan bill will put more money in their pockets.,” said Senator Cortez Masto. “This is one part of my comprehensive work to lower costs for working families and deliver for Nevadans across the state.”
The bill exempts “cash tips”—cash, credit and debit card charges, and checks—from federal income tax by allowing taxpayers to claim a 100% deduction at filing for tipped wages. The updated text includes guardrails to ensure only traditionally tipped employees will benefit from No Tax on Tips. The legislation is cosponsored by Ted Cruz (R-Texas), Jacky Rosen (D-Nev.), Steve Daines (R-Mont.), and Pete Ricketts (R-Neb.)..
Senators Cortez Masto has consistently supported efforts to cut taxes and lower costs for hardworking Nevadans. Senator Cortez Masto also helped introduce the Working Families Tax Relief Act to lower taxes for Nevada families by expanding the Child Tax Credit and Earned Income Tax Credit. Additionally, Senator Cortez Masto supports raising the federal minimum wage and eliminating the minimum wage gap for tipped workers nationally. Nevada is one of seven states that already requires employers to pay tipped workers the full minimum wage rather than a sub-minimum wage.
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