Tips given in the form of casino chips will be eligible for tax breaks under the new “no tax on tips” policy, according to Friday guidance issued by the Treasury Department.
The new guidance provides more clarity about the policy first proposed by President Donald Trump in Las Vegas last year and codified by the Republican megabill passed this summer.
There had been some confusion about which tips would qualify under the policy, senior Treasury officials told reporters in a Thursday briefing. They clarified that not only will workers be able to deduct taxes for tips given in cash, but also for those given by check, credit or debit card, gift card, electronic payment and “tangible or intangible tokens that are readily exchangeable for a fixed amount in cash (such as casino chips).”
