HF1221 (Legislative Session 94 (2025-2026))
Tip income exempted from individual income tax and tax withholding requirements.
Related bill: SF1488
AI Generated Summary
The bill, H.F. No. 1221, introduced in the Minnesota House of Representatives, proposes to exempt tip income from individual income tax and tax withholding requirements in the state.
The bill amends Minnesota Statutes 2024, specifically: - Section 290.0132, adding a new subdivision that allows tips to be subtracted from taxable income. - Section 290.92, subdivision 2a, ensuring tip income is not subject to tax withholding.
The definition of "tips" follows federal tax code guidelines, referring to tips reported by an individual to their employer under IRS section 6053(a) or reported as wages subject to employer tax obligations under IRS section 3121(q).
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 19, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| February 23, 2025 | House | Floor | Action | Authors added | |
| March 05, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"A new subdivision exempting tip income from withholding requirements."
],
"removed": [],
"summary": "This bill amends tax withholding requirements for individuals' tip income under section 290.92.",
"modified": []
},
"citation": "290.92"
}
]