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Kiplinger
Kiplinger
Business
Kate Schubel

DARK SECRETS: Will your state end tax on tips this year | Vintage Vibes

Tip jar with smiley face and a blue mug in the background.

You may have heard about eliminating federal taxes on tips. Often earned by service workers, tips are generally reported as wages on an individual’s tax return.

Despite some speculating that a potential tax exemption could help low-income workers, others say it may lead to systemic abuse.

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