Bill
HF 1221
Overview: HF 1221, "Tip income exempted from individual income tax and tax withholding requirements", was introduced on February 20, 2025. The bill's status is that the author, Sex
Overview: HF 1221, "Tip income exempted from individual income tax and tax withholding requirements", was introduced on February 20, 2025. The bill's status is that the author, Sexton, has been added.
Purpose and Intent: The main goal of this bill is to exempt tip income from individual income tax and tax withholding requirements. This would provide tax relief for workers who rely on tips as a significant portion of their income.
Key Provisions:
- Exempts tip income from individual income tax
- Exempts tip income from tax withholding requirements for employers
Affected Parties and Impacts: This bill would primarily benefit workers in the service industry, such as waitstaff, bartenders, and other tipped employees, by reducing their tax burden. It could also impact employers in the service industry, who would no longer be required to withhold taxes on tip income.
Procedural and Timeline Considerations: The bill is currently in the introduction phase, with the author, Sexton, having been added. The next steps would be for the bill to be referred to a committee for further consideration and potential amendments before moving to a vote in the legislature.
Compiled from official sources — confirm details with the bill’s official record.
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