The "no tax on tips" provision in the spending bill creates a new deduction for tipped workers, eliminating what they owe in federal income tax. Tipped workers still have to pay state and local ...

Those are the folks that benefit most," Mitchell said. The bill creates a deduction for qualifying tipped income, allowing workers to reduce their federal income taxes on up to $25,000 in tips.

The tax exemption on tips ends December, 31 2028. Workers will be able to claim the exemption in 2029 when they file their tax returns, but the deduction does not carry into 2029 wages.

Under the Senate’s proposal, the provision exempting tips from federal income tax could reduce federal revenues by $32 billion from 2025 through 2028, according to an analysis by the nonpartisan ...

In Louisiana, overtime pay, like all wages, is subject to both federal and state income tax. Currently, Louisiana's state income tax rate ranges from 1.85% to 4.25%, depending on income level.

The tax break sounds universal, but it’s slanted toward middle- and higher-income earners — workers who owe enough federal income tax for the deductions to make a real difference. A full-time ...