No Tax on Large Party Tips Act

# No Tax on Large Party Tips Act Summary **What the Bill Would Do** This bill would exempt tips from federal income taxation when they are given to service workers as part of large group dining experiences. Essentially, it proposes that workers wouldn't have to report or pay taxes on tips received from party or group meals above a certain size threshold. **Who It Affects** The bill primarily benefits servers, bartenders, and other hospitality workers who receive tips from large parties or group events.

It could also affect restaurants and hospitality businesses, as well as the federal government's tax revenue. **Current Status** The bill (S 2780) was introduced in the 119th Congress by Senator Ruben Gallego (D-AZ) and is currently in committee, meaning it has not yet been debated or voted on by the full Senate. No additional action has been taken at this time. *Note: The bill's specific party size threshold and other details are not available in the information provided.*.