S. 129

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on qualified tips through a deduction allowed to all individual taxpayers, and for other purposes.

IN THE SENATE OF THE UNITED STATES

Table of contents

• S. 129
  • Sec. 224. Qualified tips.

Sec. 224. Qualified tips.

• Qualified tips
• (a) In general
  • There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).
  • In general
• (b) Maximum deduction
  • The deduction allowed by subsection (a) for any taxpayer for the taxable year shall not exceed $25,000.
  • Maximum deduction
• (c) Qualified tips
  • For purposes of this section—
  • Qualified tips
  • (1) In general
    • The term qualified tip means any cash tip received by an individual in the course of such individual's employment in an occupation which traditionally and customarily received tips on or before December 31, 2023, as provided by the Secretary.
    • In general
  • (2) Exclusion for certain employees
    • Such term shall not include any amount received by an individual in the course of employment by an employer if such individual had, for the preceding taxable year, compensation (within the meaning of section 414(q))(4) from such employer in excess of the amount in effect under section 414(q)(1)(B)(i).
    • Exclusion for certain employees