Reported 2 months ago
The Trump-backed proposal to exempt the first $25,000 in tips from federal income tax raises concerns for workers, particularly regarding Social Security and unemployment benefits. Experts warn that failing to report all tips could diminish future retirement credits and unemployment benefits, leading to financial disadvantages. It's crucial for workers to accurately report their income, despite the proposed tax exemption, as state and local taxes, as well as Social Security and Medicare taxes, still apply.
Source: YAHOO