No Tax on Tips: What Is Known and What Do We Still Need to Know?

A provision in the new tax law offers employees no tax on tips, so Gene Marks level sets what guidance has been provided — proposed job eligibility, the deduction limit, what taxes still must be deducted — and points to other information employers and employees will require. Gene says that employees need to be aware this is a deduction to be taken at tax filing time, that employers should be aware that state tip credit is not impacted, and they should help educate employees on the new W-2 forms that will be required in 2026. Listen to the podcast.

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The information presented in this podcast, and that is further provided by the presenter, should not be considered legal or accounting advice, and should not substitute for legal, accounting, or other professional advice in which the facts and circumstances may warrant. We encourage you to consult legal counsel as it pertains to your own unique situation(s) and/or with any specific legal questions you may have.