Maddy Lopez, a bartender in Los Angeles, has spent 25 years working in the restaurant industry, where tips can make up a significant portion of a worker’s income.
When she heard about President Donald Trump’s “big beautiful bill,” which includes a section called “no tax on tips,” she said her first reaction was: “It’s a little too good to be true.”
Lopez said that in her experience, tax breaks often seem to include “a catch,” and she isn’t sure the benefit will be as generous as some workers expect.
It’s a reasonable question, experts say: Some key details of the provision — including which occupations and kinds of gratuities may qualify — are still unclear. There’s also some confusion among workers about how the tax break works.
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