HF164 (Legislative Session 94 (2025-2026))
Tip income exempted from the individual income tax and tax withholding requirements.
AI Generated Summary
This legislative bill in Minnesota proposes to exempt all tip income from individual income taxes and withholding requirements. Essentially, any money that people earn from tips—whether they report these tips to their employers or directly to the IRS—won't be subject to state income tax. This change is intended to amend the current state tax statutes.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| February 16, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"A new subdivision defining tip income and allowing its subtraction from taxable income."
],
"summary": "The bill is amending Minnesota Statutes section 290.0132 by adding a new subdivision related to the subtraction of tip income from taxable income."
},
"citation": "290.0132"
},
{
"analysis": {
"added": [
"A new subdivision altering tax withholding requirements regarding tip income."
],
"summary": "The bill plans amendments by adding a subdivision to Minnesota Statutes section 290.92, impacting tax withholding requirements."
},
"citation": "290.92"
},
{
"analysis": {
"added": [
"Clarification of reporting requirements referencing federal statute."
],
"summary": "The section refers to the federal law requirement for individuals to report tips to their employers."
},
"citation": "Section 6053(a) of the Internal Revenue Code"
},
{
"analysis": {
"added": [
"Inclusion of federal provisions regarding employer tax obligations on tips."
],
"summary": "This section pertains to the federal notice and demand for payment of employer taxes on tips."
},
"citation": "Section 3121(q) of the Internal Revenue Code"
}
]