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Who qualifies for ‘no tax on tips’ and what counts as a tip? Here are the new rules

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The Treasury Department is moving closer to making President Donald Trump’sno tax on tips ” promise a reality. But new guidance released Friday tends to limit the number of tipped workers who will be able to claim the benefit.

The agency on Friday submitted proposed regulations to the Federal Register that includes greater detail on the occupations covered by the rule and who will qualify and what counts as a “qualified tip.”

The “no tax on tips” provision in Republicans’ massive tax and spending law signed by Trump in July eliminates federal income taxes on tips for people working in jobs that have traditionally received them and allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. The deduction phases out for taxpayers with a modified adjusted gross income over $150,000.

To qualify as a tip, the tips must be must be earned in an occupation on Treasury’s list of qualified occupations. Among the jobs exempted from tax on tips are sommeliers, cocktail waiters, pastry chefs, cake bakers, bingo workers, club dancers, DJs, clowns, podcasters, influencers, online video creators, ushers, maids, gardeners, electricians, house cleaners, tow truck drivers, wedding planners, personal care aides, tutors, au pairs, massage therapists, yoga instructors, skydiving pilots, ski instructors, parking garage attendants, delivery drivers and movers.

The tip must be voluntarily given, so mandatory tips or auto-gratuities would not qualify for the “no tax on tips” benefit. However, tip pools and similar arrangements qualify, so long as they are reported to the IRS and voluntary. The benefit is not available to married individuals who file their taxes separately.

The tip must be given in cash, check, debit card, gift card or any item exchangeable for a fixed amount of cash, unlike digital assets. And any amount received for illegal activity, prostitution services, or pornographic activity does not qualify as a tip, according to the Treasury Department.

The “no tax on tips” provision will be implemented retroactively to Jan. 1, 2025.

The Yale Budget Lab estimates that there were roughly 4 million workers in tipped occupations in 2023, which amounts to roughly 2.5% of all jobs.

Congressional budget analysts project the “No Tax on Tips” provision would increase the deficit by $40 billion through 2028. The nonpartisan Joint Committee on Taxation estimated in June that the tips deduction will cost $32 billion over 10 years.

Only tips reported to the employer and noted on a worker’s W-2, their end-of-year tax summary, will qualify. Payroll taxes, which pay for Social Security and Medicare, would still be collected along with state and local taxes.

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Republished with permission of The Associated Press.


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Wilton Simpson offers personalized certificates recognizing Santa’s imminent entry into Florida

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Agriculture Commissioner Wilton Simpson is renewing his annual partnership with Santa Claus, rolling out personalized “Certificates of Clearance” that officially authorize the big man in red and his reindeer to enter Florida and deliver presents across the Sunshine State.

The holiday tradition allows the certificates, customized with each child’s name and signed by the Commissioner himself, to serve as a keepsake confirming that Santa’s operation has met all Florida requirements.

“From our beaches to our farmlands, Florida families know how to make Christmas special. I’m proud to partner with my pal Santa again this year to ensure he and his reindeer have everything they need to make their travels as safe and smooth as possible,” Simpson said.

“Children across Florida can celebrate Santa’s official clearance with a fun keepsake certificate — a reminder that Florida always cherishes its families and traditions.”

Santa, for his part, sounded pleased with the arrangement.

“Florida has always been one of my favorite stops on Christmas Eve, and my reindeer look forward to it every year. I’m grateful to Commissioner Simpson for helping us to make sure we have a safe and joyful trip across the state — fueled, of course, by Fresh From Florida treats!” Santa said.

Parents and guardians can generate personal certificates online. After setting up an account, families receive a digital certificate they can print and display ahead of Santa’s arrival — a preemptive stamp of approval designed to add a little extra magic to Christmas Eve.

But the paperwork doesn’t stop there.

As part of the annual agreement between the Florida Department of Agriculture and Consumer Services (FDACS) and the North Pole, Simpson is expected to issue an emergency order later this month. The order will waive any Department rules or requirements that could otherwise interfere with Santa’s overnight travel across Florida, ensuring a smooth sleigh ride uninterrupted by red tape.

The emergency order has become a recurring feature of the season, underscoring FDACS’ wide-ranging authority over everything from fuel standards to animal health — including, apparently, flying reindeer.

The certificates and waiver have become a reliable holiday outreach effort for the Agriculture Commissioner’s Office. Additional details about the emergency order will be released once it’s issued.

Until then, Florida families can rest easy knowing Santa’s route is being reviewed, approved and officially stamped by the Commissioner.



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Jimmy Patronis backs bill to loosen Clean Water Act regulations

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U.S. Rep. Jimmy Patronis is on board with a movement to reduce the impacts of the Clean Water Act and ease some restrictions on development.

Patronis, a Republican in Florida’s 1st Congressional District in the Panhandle, voted with many of his colleagues in favor of the Promoting Efficient Review for Modern Infrastructure Today (PERMIT Act HR 3893). Many Republicans say the proposed measure is designed to “reduce red tape.”

The proposal “eliminated duplicative and costly Clean Water Act permit requirements that do not improve environmental safety,” according to a House GOP statement.

The PERMIT Act, drafted by U.S. Rep. Mike Collins, a Georgia Republican, would also provide amendments to the Federal Water Pollution Control Act.

Patronis voted in favor of the measure, saying it’s long overdue.

“I am honored to support the passage of the PERMIT Act that will streamline … permitting, while ensuring the environment is protected,” Patronis said. “We must keep the government out of our backyards and restore power to the states.”

The measure has yet to go to the full floor of the U.S. Senate for consideration.

But the bill, according to supporters, reduces costly project delays and unnecessary litigation. It provides certainty to infrastructure builders, farmers, water utilities and small businesses, according to wording in the measure.

The bill would limit the scope of the Clean Water Act, which was originally approved by Congress in 1972. When it comes to permitting under the Clean Water Act, the new measure Patronis supports would exclude waste treatment systems, prior converted cropland, groundwater, or features that are determined to be excluded by the U.S. Army Corps Engineers.

While conservatives in Congress support the PERMIT Act, the measure has drawn criticism from environmental activist organizations.

The Hydropower Reform Coalition assailed the proposal for what it says undercuts long-standing environmental protections for many of America’s waterways.

“This prevents states from considering upstream, downstream, or cumulative impacts of projects like dams, pipelines, or large-scale developments,” a Coalition analysis said. “Enforcement authority would rest only with federal permitting agencies, leaving states unable to enforce the very conditions they might place on a project.”



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Robin Pegeuro nets CD 27 endorsement from Joe Geller

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Former prosecutor Robin Peguero just landed an endorsement from Miami-Dade County School Board member Joe Geller as Peguero seeks to supplant Republican U.S. Rep. María Elvira Salazar.

Geller, who previously served in the Florida House, as Mayor of North Bay and as Chair of the Miami-Dade Democratic Party, said in a statement that Peguero “will fight for you and me in Congress.”

“Robin will fight for lower costs and affordable healthcare and housing. He’ll fight to defend the rule of law and our democracy. He’ll fight to give all our families a fair shot at the American Dream,” Geller said.

“Robin will take back this seat in Congress — and I’m proud to endorse him.”

The nod from Geller joins others from Key Biscayne Council member Franklin Caplan, Coral Gables Commissioner Melissa Castro, Cutler Bay Council member B.J. Duncan, former U.S. Rep. Donna Shalala, former state Reps. Annie Betancourt and J.C. Planas, and ex-Key Biscayne Mayor Mike Davey, who withdrew from the race for Florida’s 27th Congressional District and immediately endorsed Peguero in August.

Peguero also carries support from CHC Bold PAC, the campaign apparatus of the Congressional Hispanic Caucus, which prioritizes increasing Latino representation in Congress.

A former federal homicide prosecutor born to immigrant parents from the Dominican Republic and Ecuador, Peguero’s government bona fides include a stint as an investigator for the congressional Jan. 6 Committee and work as Chief of Staff to U.S. Rep. Glenn Ivey, a Maryland Democrat.

Today, he works as a novelist and professor at St. Thomas University College of Law.

Peguero will face at least two CD 27 Primary opponents: accountant Alexander Fornino and entrepreneur Richard Lamondin.

Through the last reporting period that ended Sept. 30, Peguero raised $330,000, while Lamondin amassed $453,000 and Fornino collected $25,000.

Salazar, meanwhile, has amassed $681,000 since winning re-election to a third term last year by 21 percentage points. She also has more than $1.64 million in reserve, Federal Election Commission records show.

CD 27 — one of three Florida districts that the Democratic Congressional Campaign Committee has highlighted as “in play” — covers Miami, Coral Gables, Cutler Bay, Key Biscayne, Pinecrest, North Bay Village, South Miami, West Miami and several unincorporated areas.



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