Working Families Tax Cuts Support Tipped Workers

Working Families Tax Cuts Support Tipped Workers

Washington, D.C.-National Waitstaff Day recognizes the millions of waiters and waitresses whose hard work and friendly attitudes make dining out an enjoyable experience. Thanks to the Working Families Tax Cuts, workers in occupations that customarily and regularly receive tips are now eligible to claim a deduction of up to $25,000, no matter whether they itemize or claim the standard deduction. This filing season, over 7 million filers took advantage of the policy, receiving an average deduction of over $7,000.

"Under Republican tax relief, millions of working-class Americans are seeing bigger paychecks, more jobs and more money in their pockets," said U.S. Senate Finance Chairman Mike Crapo (R-Idaho). "From waitresses to taxi drivers, new tax relief like no tax on tips and overtime are allowing hardworking Idahoans to keep thousands of dollars more of what they have earned."

Key wins:

• No tax on tips for millions of waiters and waitresses
• No tax on overtime for millions of America's hourly workers
• Permanent lower tax rates for all taxpayers
• Permanent increased standard deduction, claimed by 90 percent of taxpayers
• Permanent increases to the Employer-Provided Child Care Credit, the Child and Dependent Care Tax Credit and the Dependent Care Assistance exclusion

What they are saying:

"I have been in the service industry for a little over 11 years now. Tips play a huge role in my take-home pay. Being able to take home more of my hard-earned tips means that I will be able to support my family a lot better… Not only is it just about the money, but I believe it is about stability and the ability to be able to go home after a long hard shift and be able to breathe a little bit lighter." - Rheanna, server

"We really wanted to make sure that No Tax on Tips and No Tax on Overtime, something that President Trump turned into a campaign promise, turned out right, and we're really pleased that Congress did get it right. They didn't make it more confusing for the operators or the employees." - National Restaurant Association Executive Vice President of Public Affairs Sean Kennedy

Click HERE to learn more about how the Working Families Tax Cuts support workers who rely on tips.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.