The tip deduction under the OBBBA is a deduction from taxable income, not a full tax exemption on tips.
reported by 2 outlets · Characterization · first recorded Jul 8, 1:30 AM
How each outlet reported it
finance.yahoo.comUnrated · Jul 8, 12:45 AM
'No tax on tips' is described as having 'more nuanced' reality despite 'the promise' of a 'straight boost'
Details: 'more nuanced'; 'straight boost'
kiplinger.comUnrated · Jul 8, 12:45 AM
The tip deduction is described as 'not tax-free tips' with emphasis on the importance of this distinction
Details: emphasis on distinction from tax-free income; still owe payroll taxes