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HR 558 United States House · 119th Congress

Tip Tax Termination Act

This bill excludes up to $20,000 in tips from taxable income for workers in hospitality, food service, and cosmetology who rely on tips as part of their wages. It applies to tips received after December 31, 2024, and ends for tips received after December 31, 2029. The excluded tips still count toward qualifying for the child tax credit and earned income credit, but not for other tax deductions or credits. The IRS must adjust withholding procedures to reflect this exclusion starting in 2025.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExcludes tips from taxable income for hospitality/food service workers (lower/middle income), reducing their tax burden - direct tax relief aligning with support indicators.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes tips from taxable income for hospitality workers, increasing take-home pay and aligning with worker benefit expansion.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
President
Introduced Jan 20, 2025 Last action Jan 20, 2025
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Full legislative history

Actions timeline

Total actions
2
Key actions
0
Committee
1
Jan 20, 2025
Committee
Referred to the House Committee on Ways and Means.
lower
Jan 20, 2025
Introduced
Introduced in House
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Don Bacon
Don Bacon
RRepublican
NE
2