Treasury Department publishes a list of positions eligible for 'tax-free tip income'
In a move that is significant for workers in Las Vegas, particularly those employed in commercial casinos, a policy that exempts tips from federal taxes has been implemented. This policy, discussed in an article penned by Jessica Hill for the Las Vegas Review-Journal, is part of the One Big Beautiful Bill Act that was signed into law in July.
The policy, which applies to a specific list of 68 jobs, offers a temporary tax deduction of up to $25,000 a year until 2028. The professions on the Treasury Department's preliminary list, which includes casino dealers, servers, bartenders, hotel staff, and other tip-reliant sectors in hospitality and food service, stand to benefit from this policy.
The policy, however, does not apply to all jobs. It is specifically designed for workers in commercial casinos in Las Vegas. In fact, commercial casinos in the city do not tax tips earned by workers, a practice that allows them to keep more of their earnings.
The Treasury Department has already released a preliminary list of 68 jobs that qualify for the policy. Public comments will be requested regarding the final list of jobs eligible for the tax deduction, which is expected to be substantially the same as the preliminary list. The official list of occupations will be published in the Federal Register as part of other proposed regulations from Treasury and the Internal Revenue Service.
The policy has been met with widespread approval, with many workers in Las Vegas hailing it as beneficial and popular. For those employed in commercial casinos, this tax break on tips is a significant development, one that is set to make a positive impact on their financial well-being.
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