WASHINGTON – A new law is providing significant financial relief for many of America's tipped workers. Under the measure, employees can now exclude up to $25,000 in tips from federal income taxes, a change championed by President Trump.
For the roughly five million employees who rely on tips as a key part of their income, the measure is a welcome reprieve.
From busy restaurants to bustling salons and rideshare gigs, tips have long been a critical part of workers' livelihoods. Now, employees can keep more of what they earn, potentially adding hundreds of dollars per month to their take-home pay.
"The American people are overtaxed. No doubt about it, and they need a tax cut. This is going to help them. The problem is, it's short-term," Dan Pilla of Taxhelponline.com said.
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