<ul><li>Legislation eliminating federal income taxes on tips could potentially benefit around 4 million U.S. workers, especially those in tipped occupations like restaurants, hotels, and courier services.</li><li>The Senate recently passed the No Tax on Tips Act, aiming to provide a tax deduction for workers on reported tips, with a similar provision in a tax bill by the House Ways and Means Committee.</li><li>While the legislation offers tax relief, concerns include misclassification of income as tips, potential disparities in taxation for workers in different occupations, and the impact on digital payouts and income reporting.</li><li>Uber and DoorDash are working to ensure coverage under the legislation for their independent contractors, highlighting the potential shift to digital payouts and benefits associated with untaxed earnings for workers.</li></ul>

‘No Tax on Tips’ Legislation Could Affect 4 Million US Workers

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