Listen "058: Understanding No Tax on Tips"
Episode Synopsis
The No Tax on Tips Act is being celebrated by some in the service industries, but there are several key details massage therapists need to understand before assuming it's a tax-free free-for-all.Massage therapists often receive tips—especially those working in spas, franchises, hotels, and even private practice. This bill recognizes tipping as a customary part of compensation in “beauty service” roles, which includes body and spa treatments.So YES—massage therapists qualify for this tax break if:They receive tips reported to their employer (or themselves, if self-employed).Their total tips are within the $25,000 annual deduction limit.But the story doesn't end there. Listen to learn more about the nuance behind how this bill ACTUALLY works.
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