MCLENNAN COUNTY, Texas (KXXV) — President Donald Trump's "No Tax on Tips" policy, which passed in July, allows eligible workers to deduct up to $25,000 worth of qualified tips from their taxes per year.
- Pres. Trump's "No Tax on Tips" policy allows eligible workers to deduct up to $25,000 worth of qualified tips from their taxes per year.
- The U.S. Department of the Treasury released a preliminary list of 68 jobs across 8 categories including food service, hospitality, entertainment, personal services, and transportation.
- Coffee shop manager Natasha Vargas says her shop sees around $20 a day in tips, and the policy provides incentive for workers to do their best job.
You can watch the full story here:
BROADCAST TRANSCRIPT:
President Donald Trump's "No Tax on Tips" policy, which passed in July, allows eligible workers to deduct up to $25,000 worth of qualified tips from their taxes per year.
The Treasury Department released a preliminary list of 68 jobs eligible to claim the tax break, spanning eight main categories: beverage and food service, entertainment and events, hospitality and guest services, personal appearance and wellness, home services, personal services, recreation and instruction, and transportation and delivery.
Some jobs listed include:
- Beverage and food service: coffee shops, bakers, and food servers
- Entertainment and events: dancers, musicians, and ushers
- Hospitality and guest services: hotel clerks and housekeeping cleaners
- Personal appearance and wellness: barbers and tattoo artists
- Home services: plumbers, and roadside assistance workers
- Personal services like portrait photographers, and babysitters
- Recreation and Instruction: golf caddies and travel guides
The next time you pay for your drink at your local coffee shop, that tip you leave could help out your barista more than you think.
"You can work your hardest, and to know that what you're working for, you get," said Natasha Vargas.
Vargas manages the New Mexican coffee shop on 25th Street called Mila Cafe.
She tells 25 News they're seeing around $20 a day in tips.
"It's pretty equal as far as reliance on it. I mean you get a fair share of your pay already, and then we feel like whatever comes in after is just extra," Vargas said.
Vargas says that extra helps create a better environment for customers and makes a difference in the lives of neighbors working in these industries.
"I feel like it's a good incentive to strive to do that best job you can possibly do," Vargas said.
It's important to remember "No Tax on Tips" is not a tax exemption — it's a deduction. And it's not a deduction for businesses — it's a deduction for employees.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
