I 
118TH CONGRESS 
2D SESSION 
H. R. 8941 
To amend the Internal Revenue Code of 1986 to eliminate the application 
of the income tax on cash tips through a deduction allowed to all 
individual taxpayers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2024 
Mr. DONALDS (for himself and Mr. VAN ORDEN) 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 eliminate 
the application of the income tax on cash tips through 
a deduction allowed to all individual taxpayers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Tax on Tips Act’’. 
SEC. 2. DEDUCTION FOR CASH TIPS. 
(a) IN GENERAL.— 
(1) DEDUCTION ALLOWED.—Part VII of sub-
chapter B of chapter 1 of the Internal Revenue Code 
of 1986 is amended by redesignating section 224 as 
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section 225 and by inserting after section 223 the 
following new section: 
‘‘SEC. 224. CASH TIPS. 
‘‘There shall be allowed as a deduction an amount 
equal to the cash tips received during the taxable year that 
are included on statements furnished to the employer pur-
suant to section 6053(a).’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections for part VII of subchapter B of chapter 1 
of such Code is amended by redesignating the item 
relating to section 224 as relating to section 225 
and by inserting after the item relating to section 
223 the following new item: 
‘‘Sec. 224. Cash tips.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and 
inserting ‘‘and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the deduction provided in section 224.’’. 
(c) NON-APPLICATION
OF CERTAIN LIMITATIONS 
FOR ITEMIZERS.— 
(1) DEDUCTION NOT TREATED AS A MISCELLA-
NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 
Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘and’’ at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and insert-
ing ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(13) the deduction under section 224 (relating 
to cash tips).’’. 
(2) DEDUCTION
NOT
TAKEN
INTO
ACCOUNT 
UNDER OVERALL LIMITATION.—Section 68(c) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting 
‘‘, and’’, and by adding at the end the following new 
paragraph: 
‘‘(4) the deduction under section 224 (relating 
to cash tips).’’. 
(d) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) of the Inter-
nal Revenue Code of 1986 to take into account the deduc-
tion allowed under section 224 of such Code (as added 
by this Act). 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
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