Welcome to CalMatters, the only nonprofit newsroom devoted solely to covering issues that affect all Californians. Sign up for to receive the latest news and commentary on the most important issues in the Golden State. No tax on tips, a campaign promise by President Donald Trump, is now part of the U.S. tax code, but experts across the political spectrum see limited benefits for California workers.
The Treasury Department and the IRS late last month released details of their proposed regulations around the new tax deduction, which Republicans included in their spending bill.
Under the provision, taxpayers who make less than $150,000 a year, or $300,000 if filing jointly, could deduct up to $25,000 in tips from their federal income taxes, regardless of whether they itemize their dedu