A policy stemming from President Donald Trump’s One Big Beautiful Bill Act (OBBBA) would allow workers to deduct taxes for tips received via casino chips.
A policy from the IRS, originating from the OBBBA that was signed back in July, would make casino chips included in a tax break that applies to “tangible or intangible tokens that are readily exchangeable for a fixed amount in cash”. While this is not focused only on casino chips, and also includes tips given by check, credit or debit card, gift card, and electronic payment, it’s good news for casino workers, at a time when the future of physical casinos is under threat.
The ‘no tax on tips’ policy was first put forward by President Trump last year and states that workers will be able to implement the rule when filing their taxes in 2026. The policy will stay in place until the end of 2028, meaning that employees can deduct up to $25,000 in tips from their taxable income per year, so long as they earn less than $150,000 gross in a year.
Beyond casino chips
As well as including casino chips for gambling workers, other roles that have been mentioned in connection with the OBBBA policy are home repair workers, tutors, hair stylists, pet caretakers, golf caddies, travel guides, valet drivers, and fitness trainers, to name but a few.
However, casino chips are mentioned directly in the Explanation of Provisions on the Federal Register, highlighting that it’s seemingly a direct focus of the policy. Workers will also benefit from the ‘no tax on tips’ policy through the consideration of Tip Rate Determination Agreements and Gaming Industry Tip Compliance Agreements, which means that the IRS does not require workers to track individual tips by leveraging a set rate for their tax reports.
There will be a public hearing to address any questions on the policy on October 23.
Featured image: Unsplash
The post Casino chips included in new ‘no tax on tips’ policy from US Treasury appeared first on ReadWrite.
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