LAS VEGAS, Nev. (FOX5) – Nevada tip workers are weighing the impact of the “No Tax on Tips” provision in the “Big Beautiful Bill” that President Donald Trump signed on the Fourth of July.
Nevada has the highest number of tip workers per capita, according to the Federal Reserve Bank of St. Louis.
The bill makes the following changes for tip workers:
- A tax deduction of up to $25,000 in tips
- Tips can be taxed after wages exceed $150,000 (per spouse)
- The provision ends in 2028
It’s now up to agencies like the Internal Revenue Service to practically implement the bill language, according to Certified Public Accountant Kim Walker.
“I feel that it is a game changer for the average tip earner. Our average citizens who are tip earners are pretty much going to be under that $25,000 limit for the year. A large percentage of their taxable income now overnight becomes non-taxable. Especially for single mothers or families with some children, that difference could be really a benefit for them,” Walker said.
Many tip workers are also independent contractors; higher-earning tip workers across Las Vegas work in various entertainment venues that cater to VIP clients.
If you’re a lower-wage tip earner, tax professionals advise assessing your W-4 and withholdings; always consult a professional, first.
“Give your tax professionals a couple days to digest. There’s a lot of tax stuff in this bill. Then absolutely reach out before the end of the year to see how this is going to affect you and what adjustments you need to make,” said Tracy Janssen of Symphony Business Services.
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