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H.R. 558

U.S. House•In House Committee

Summary

H.R. 558, the Tip Tax Termination Act, was introduced in the House on Jan 20, 2025 by Rep. Don Bacon (R). It was referred to Ways And Means, and last saw action on Jan 20, 2025: Referred to the House Committee on Ways and Means.

Record

Text

H.R. 558 has no co-sponsors and has not gone to a roll call.

hb558/introduced-in-house.txt
119 HR 558 IH: Tip Tax Termination Act
 U.S. House of Representatives
 2025-01-20
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 558  IN THE HOUSE OF REPRESENTATIVES   January 20, 2025   Mr. Bacon  introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to provide that certain tips shall not be subject to income taxes for a period of 5 years.
1.
Short title
This Act may be cited as the   Tip Tax Termination Act  .
2.
Exclusion from gross income of certain tipped wages
(a)
In general
Part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
139J.
Certain tipped wages
(a)
In general
Gross income shall not include so much of the eligible tips received by an individual during the taxable year as does not exceed $20,000.
(b)
Eligible tips
For purposes of this section, the term  eligible tips  means amounts received while performing services which constitute employment in a position which generally relies on tips as part of wages, including cosmetology, hospitality, and food service.
(c)
Denial of double benefit
(1)
In general
Except as provided in paragraph (2), any amount which is excluded from gross income under this section shall not be taken into account in determining any deduction or credit under this chapter.
(2)
Exception for child tax credit; earned income credit
The amount excluded from gross income under this section shall be taken into account for purposes of determining the credits under sections 24 and 32.
(d)
Termination
This section shall not apply to tips received after December 31, 2029.
 .
(b)
Withholding
The Secretary of the Treasury (or the Secretary’s delegate) shall modify the tables and procedures prescribed under  section 3402(a)  of the Internal Revenue Code of 1986 to take into account amounts excludible from gross income under section 139J of such Code (as added by this Act).
(c)
Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:
Sec. 139J. Certain tipped wages.
  .
(d)
Effective date
The amendments made by this section shall apply to amounts received after December 31, 2024.

Tracker

The tracker indicates the progress of this legislation as it moves through the legislative process.

  1. Introduced2025-01-20
  2. Passed House
  3. Passed Senate
  4. Conference
  5. To President
  6. Became Law

CRS Summary

The summaries are the Congressional Research Service’s, one per stage. Read them in full.

Introduced in House Jan 20, 2025

hb558/introduced-in-house.md

Shown Here:
Introduced in House (01/20/2025)

Sponsors

Rep. Don Bacon (R) sponsors H.R. 558 alone.

Don Bacon

Rep. · R–NE-2 · Sponsor

Committees

H.R. 558 went before 1 committee: Ways and Means.

Ways and Means
Ways and Means
Referred To · Jan 20, 2025 · 1,160 Bills

Actions

H.R. 558 has taken 2 actions since Jan 20, 2025.

ChamberAction
Jan 20, 2025
House
Introduced in House
Jan 20, 2025
House
Referred to the House Committee on Ways and Means.Ways and Means Committee

Votes

H.R. 558 has not gone to a roll call.

Titles

H.R. 558 goes by 3 titles, 1 of them short titles.

  • Tip Tax Termination Act — Display Title
  • Tip Tax Termination Act — Short Title(s) as Introduced
  • To amend the Internal Revenue Code of 1986 to provide that certain tips shall not be subject to income taxes for a period of 5 years. — Official Title as Introduced

Classification

The Congressional Research Service files H.R. 558 under Taxation, one of its 31 policy areas.

CRS Subjects

CRS assigns every bill one policy area from its 31; H.R. 558’s is Taxation.

hr558/policy-areas.txt
TaxationAgriculture and FoodAnimalsArmed Forces and National SecurityArts, Culture, ReligionCivil Rights and Liberties, Minority IssuesCommerceCongressCrime and Law EnforcementEconomics and Public FinanceEducationEmergency ManagementEnergyEnvironmental ProtectionFamiliesFinance and Financial SectorForeign Trade and International FinanceGovernment Operations and PoliticsHealthHousing and Community DevelopmentImmigrationInternational AffairsLabor and EmploymentLawNative AmericansPublic Lands and Natural ResourcesScience, Technology, CommunicationsSocial WelfareSports and RecreationTransportation and Public WorksWater Resources Development

Source: congress.gov · legiscan.com