TaxTipsDaily

👋 Hello World! I just launched this account to break down complex tax rules into simple, actionable advice for everyone. Whether you are a freelancer, a small business owner, or just trying to navigate tax season, I am here to help you keep more of your hard-earned money.

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NEW TIP DEDUCTION: The “no tax on tips” rule is an above-the-line deduction for certain tip income received in tax years beginning after 2024 and before 2029. Eligible individuals may deduct up to $25,000 of qualified tips on their federal income tax return, subject to income-based phaseout and other limitations. Tips generally remain subject to income reporting, withholding, and Social Security and Medicare tax rules. “Cash tips” includes: 1. Tips paid in cash 2. Charged tips 3. Tips received under a tip-sharing arrangement The deduction is capped at $25,000 per taxable year. The deduction is reduced by $100 for each $1,000 by which modified adjusted gross income exceeds: $150,000, or $300,000 for a joint return.

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