SPRINGFIELD, Mo. (KY3) – Workers across dozens of industries are celebrating what feels like an early Christmas present as the IRS finalizes new “No Taxes on Tips” rules. However, confusion persists over who qualifies and the amount of tip income that can be tax-free.
Robin Daniels, owner of Headturners Salon, said the tax relief is welcome news. “Every little bit helps, right?” Daniels said.
Esthetician Dani Pace from Elevated Brow and Lash Studio shares that enthusiasm. “I’m thrilled about it,” Pace said. As a new business owner in her fourth month of operation, Pace said the financial benefit could be significant for her family of three. “It’s just a huge financial gain for everyone in this industry,” she said.
Who qualifies for the tax break?
Currently, 68 occupations qualify for the tax break, including bartenders, bakers, roofers, salon workers, and estheticians. However, many workers have questions about how the new system will work in practice…