An Act to exclude tipped wages from taxable income
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill proposes to exclude tips earned by workers from their taxable income. Currently, tips are often reported to employers, who then split them with employees, and this portion is subject to income tax. This legislation aims to simplify the tax process for tipped workers by allowing them to directly report their total earnings, including tips, to the state.
Key provisions
- Excludes tips from taxable income for employees.
- Allows tipped workers to report their total earnings, including tips, directly to the state.
- Addresses the current practice of employers splitting tips with employees.
- Simplifies the tax filing process for tipped workers.
- Relates to the Revenue department.
- Scheduled for a hearing on November 18, 2025.
Who is affected
- Tipped workers
- Employers of tipped workers
- The Massachusetts Department of Revenue
Notable changes
- Changes the way tips are treated for tax purposes.
- Potentially simplifies tax reporting for tipped employees.
Bill text
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Sponsors
Official sponsors from legislative records.
6 on record
Primary sponsor
Michael J. Soter
Cosponsors
Joseph D. McKenna
Michael J. Soter
Arguments
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