LAS VEGAS (KSNV) — Tipped workers in Nevada, particularly in Las Vegas, are grappling with the reality behind the “no tax on tips” promise, which experts say is misleading. Debra Jeffries, a cocktail waitress and 45-year member of the Culinary Workers Union, expressed her frustration, saying, “Yeah, it’s quite a bait and switch from the campaign days to what it basically boils down to. And we’re not even sure what that boils down to.”
The U.S. Treasury Department and IRS have begun releasing details about the “no tax on tips” provision in the recent legislation. However, Francine Lipman, a professor of law at UNLV, explained, “The way this provision specifically works it is not an exclusion so it is a little bit misleading to say no tax on tips because there’s some conditions precedent to getting that deduction.”
Workers like Jeffries will still see taxes deducted from their paychecks initially. “We’re not getting tipped like we used to. And so I’m getting taxed on, if someone doesn’t tip me, you know, it’s kind of like I look at it like money out of my pocket,” Jeffries said…