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No Tax on Tips Act? Here’s What That Really Means

So there’s been a lot of talk lately about “no tax on tips act” If you work in a restaurant, bar, salon, spa, or anywhere you get tipped—you might be thinking finally!

Well… here’s what’s really going on.

What Just Happened

Congress passed a huge new bill (like, trillions of dollars big), and tucked inside it was something called the No Tax on Tips Act.

It means this:

👉 You won’t have to pay federal income tax on up to $25,000 in tips each year.

👉 But you still have to report your tips and still pay Social Security and Medicare taxes (those come out of your paycheck like always).

👉 It only counts for cash tips that you report to your boss.

👉 This is good for 2025 through 2028 — after that, it might go away unless Congress brings it back.

Who This Helps

If you work in:

• Restaurants 🍔

• Bars 🍸

• Hair or nail salons 💅

• Spas or hotels

• Any job where you get tipped in cash…

This law could save you hundreds or even thousands of dollars each year on your taxes.

But Read the Fine Print before you go celebrating too hard:

• You must report your tips to get this benefit. If you’ve been keeping tips off the books, you won’t qualify.

You’ll still pay payroll taxes like Social Security and Medicare. That part didn’t change.

If you make over $150,000 a year, you don’t qualify.

It’s temporary. This is only good through 2028 (for now).

So Is This a Big Deal?

Yes, for a lot of workers, this is a big help.

You work hard, and tips are your livelihood. This law lets you keep more of the money you’ve already earned. That’s real money in your pocket—especially when rent, groceries, and gas prices keep going up.

But it doesn’t help everyone. People who work behind the scenes—like dishwashers or cooks—don’t get tips and won’t benefit at all.

And it’s not a total tax break—you still have to follow the rules, report your income, and pay some taxes.

Bottom Line

If you make tips, report them, and earn under $150K—you win.

This new law gives you a tax break on up to $25,000 in cash tips per year. That means more money stays with you.

Just keep track of your tips, report them the right way, and be smart when filing your taxes.

Got questions about how this works for you personally? Ask a tax pro or drop a comment on our social media post. Follow us on Instagram and Facebook @Sagharbor @Hamptonsmp

Real Talk, Real People

The Lesson of Thalidomide for Covid19, Look Before You Leap – My youngest daughter will say in the most excruciating terms that I am old, especially when I am trying to make a point based on some ancient piece of information that I remember to support an argument I am trying to win. She calls me ‘Lesson Plan Dad.’ It’s not a term of endearment. I usually go off and shake my head because she will sometimes ignore me or dismiss me from existence. But a funny thing happened as she was going out recently, she whispered to me before I had a chance to ‘advise her’  about following Covid19 precautions, “don’t worry Dad, I remember everything you said I had to do to remain safe. I hear your voice all the time.” This pleased me to no end because, 20 years after the death of my own Mother, I still hear her ‘voice’ warning me and giving me good advice. I’m sure some of you have that same experience.

The proverb, ‘Look before you leap’ has been a form of advice that has been given for centuries. This proverb was first noted in a 1380 manuscript and then captured in a collection of English proverbs by John Heywood in 1546; describes unintended actions and reactions that can lead to untoward results. The first use of this term in America is associated with a failure in diplomacy in the late 1600’s that occurred in New England during the time of the colonists and a war that caused significant damage of property and loss of life for both the Native Americans and many colonists who had previously coexisted uneasily (King Philip’s War). As defined, both sides in this tragic circumstance did not take-into-account all the consequences of their actions and could not avert the turmoil which befell them all.

In 1957 West Germany, a medication that was hailed a wonder drug and was marketed as a treatment for, nervousness, anxiety and morning sickness and distributed over the counter (OTC), turned into a nightmare for the German people. Many side effects of this medication included horrendous birth defects in the guise of malformation of the limbs, still born babies, tumor development and many other conditions. This medication was named Thalidomide. This drug was prevented from being introduced to the American market by a pharmacist, Frances Kelsey at the Food and Drug Administration (FDA), because of her concerns for the safety of our population. Because of the horrific birth defects noted in the so called ‘Thalidomide Babies,’ greater constraints and regulatory oversight of medications before their use in the public space has become one of the hallmarks of our American medical and pharmaceutical model. Appropriate oversight by the FDA has saved lives. We are looking before we leap!

During these dangerous times, in the Age of Covid19, our well-founded fear and concern for the lives lost and the lives at risk could have the effect of eroding the lessons of the past when it comes to the manufacture and distribution of a vaccine before the necessary due diligence has been implemented. I understand this rush for a cure, but I am reminded and informed about the possible consequences of not performing the work needed to safeguard ourselves from a malady of our own making. There is a reason why there isn’t a Corona vaccine in the world’s arsenal, its hard to create. Mutagenesis (DNA mutations that are engineered secondary to induction by an external factor) and Carcinogenesis (the result of agents capable of developing malignant tumors by inducing cellular changes) are the untoward effects that can result from the introduction of an external, uncontrolled factor into the population. I am not a fear monger, nor am I a scientist, microbiologist or anything remotely approaching an expert in the field on immunology or virology. I am a nurse by profession with a healthy appreciation for the rule of unintended consequences.

Let’s do this by the book! I am informed by the ethical boundaries of not experimenting on animals and conducting animal studies but in this most hazardous of times, please employ ethicists to conclude if utilizing an animal for determining if generational impacts can be averted in the human hosts who will be the final recipients of any vaccine that is developed can be averted. I am not a ‘Night of the Living Un-Dead Roach Avengers’ kind of guy but take a look at our oceans and see the harm we have done by introducing plastics to that environment and see the fish that have plastics in their systems that we are eating now. You get my point. There are potential downstream repercussions to our actions that must be considered and explored. For our children’s sakes, let’s not muck this up any worse than it already is by allowing political expedience to be determinative for the science that is necessary to figure this out and arrive at the best course of action to take. 

Yes, this is Lesson Plan Dad saying, we better LOOK BEFORE WE LEAP!!!

A Town of Bandits: Tombstone never looked like this. Wyatt Earp would have gone crazy. The line in front of King Kullen in Bridgehampton, NY and countless other supermarkets in the country are full of people wearing masks, bandanas of every color and stripe, waiting on line (6 feet apart) to swipe that Lysol spray. They are on line (6 feet apart) to get that last roll of toilet tissue in aisle 9, on the left behind the Bounty. “I refuse to use the Bounty to wipe my As…….. Too rough on the butt, but plenty absorbent!” 

The Bandits are on the loose! From Montauk to Flatbush, from Sag Harbor to Bed-Stuy, the Bandits are everywhere. Who would have thought? You can’t tell the good guys from the bad. “Oh look at that bad desperado over there in the shadows, leaning over to the side, with that slow purposeful walk; slight glint in their eye. They are heading right toward me. I’m getting scared now. Of course they have a mask on, hiding their face. What am I to do? Nowhere to run or hide. Here they come, reaching in their pocket, taking out a…. set of glasses…. oh she’s smiling….it’s Grandma. Damn I feel foolish now. I guess I’ll just have to trust my neighbors more”.  There are some bad people in the world but overwhelmingly good people are around us. Just look at the heroes in every Hospital, Nursing Home and providing Home Care services. The GOOD GUYS are fighting the good fight and will win this war!

Photo credit: Hamptons Mouthpiece

We are all Bandits now. No time to look at each other with jaundice eye. Our plight is the same. Social distancing in an age of disease with imposing names, SARS,  Corona Virus, Covid-19 or as it is known in the inner city….”The ‘Rona.” We are ALL IN THIS TOGETHER! We are all Bandits now, faced with the same circumstance, forcing us apart but bringing us together like never before. 

I was taken aback the other day when I was getting ready to order door front service from a local store in Southampton in an effort to support a local business. I witnessed multiple people going into the store, opening the closed door with their bare hands; no gloves on, no masks on (hey businesses, leave your doors open when possible to prevent the spread of virus on door handles). I left the store not ordering anything knowing that it was a risk. EVERYONE has to take this seriously, accept their responsibility for each other’s health; this is about life and death.

Photo credit: Cindy Warne (made by Cindy Warne)

To all my fellow Bandits, please continue to wear your masks, wear your gloves, wash your hands, wash your hands, wash your hands! Let’s #flattenthecurve. Practice social distancing, keep in touch with the elderly shut-ins, call a friend, ZOOM videoconference with the proper safety and privacy features enabled to stay connected. 

We continue to pray for your safe travels!

WE CAN DO THIS!!!

TOGETHER

WE ARE APPALLED, HORRIFIED AND SADDENED; by the recent attacks on our Jewish brothers and sisters in the recent New York attacks and acts of anti-Semitism throughout the United States. This cannot stand; this is a symptom of a broader problem in this country and the world. Whether it is anti-Semitism, homophobia, vilification of immigrants, racism or the fear and hatred of “the other” we at Hamptons Mouthpiece condemn these acts of violence against our human community. We should not, cannot tolerate and view with indifference the attack on the Jewish community. First it will be Jews, then Muslims, then Blacks, then Latinos, then Asians, then poor people, when will it end? It is imperative that people of goodwill publicly condemn these acts of violence, everyday people in our communities with our families, with our friends. We need to talk about these issues and demand civilized public discourse between our political leaders. THIS IS AMERICA, a land of immigrants, living together, loving our families, praying separately but walking together in this wonderful country. Let us not make the mistake of thinking that this is a majority of people committing these acts of hatred and violence, IT IS A SICK MINORITY that must face the light of equal justice under the law. 

photo: Hamptons Mouthpiece

The risk that we face is suspicion of each other. We must fight this fear of “the other” or it will lead to a path of hate and destruction of our American way of life. We must judge each other by our actions; we must come together as Americans. We stand with our brothers and sisters in the Jewish community and condemn these acts of violence. Our children are watching; WE MUST STOP THE VIOLENCE, ENOUGH IS ENOUGH!

This is a plight of significant proportion and there is of course an impact to neighboring countries in South America and as far as Spain, where Venezuelan immigrants are seeking refuge. But we should make no pretense on what is unfolding here. Our media outlets showed the imagery of Russian jets landing on Venezuelan soil in increasing numbers. The embrace of Maduro by Russian, Turkey and to a lesser degree, North Korea.This is happening in the Western Hemisphere and is seen as a threat (real or contrived and inflated). Interesting that the plight of the Haitian people who are also in our Hemisphere is not considered a priority or ‘humanitarian crisis, but that writing is for another day.

Further, and here is the kicker….Venezuela is OIL RICH (oh… Haiti, now I understand). Let me repeat that. Venezuela is OIL RICH. The ability of many multinationals (in case you were wondering, the 1%) to manipulate OPEC, Russia’s oil dominance and an opportunity to determine Russian economic stability is too great an opportunity for America, especially this administration to squander, or so they may think.

If I were the American tourists, dignitaries and Embassy staff located in Venezuela I would be packing my bags and getting on the next flight out, because they are going to be the pawns used as a simulated pretext for American intervention. Think hostage situation. Think about Maduro’s threats and demand that they leave. Think about Secretary of State, Mike Pompeo’s position that Maduro cannot demand they leave. Is Pompeo kidding???? All the precursors for an invasion…er sorry….INTERVENTION (so much cleaner and sanitized a term).

I remember the Iranian hostage CRISIS. I see this devolving into a situation that may be reminiscent of that malady. 

I am no military planner, I am not Nostradamus, I have no other concern other than to say, I have seen this movie before. A high level American politician setting the stage for intervention by preparing the American public about ‘humanitarian’ or ‘geopolitical’ crisis forming “right off our shores”. A President with sagging popularity looking for an ‘October Surprise.’ Military threat from….The Russians. And….get ready…… ITS ABOUT THE OIL. ITS ABOUT THE MONEY! 

Who will get rich at the expense of some other nation’s citizens?

I will remind you of the Shah of Iran and American intervention that gave rise to the Ayatollah Khomeini. Iran Contra Affair. The Domino Theory. The Iraq War (take your pick which one) giving rise to ISIS.  I know, I know, these are all disparate ‘adventures’ with unrelated precursors save one. MONEY. Look and see what was at the root of these interventions by our government. Oil, land, territory and a geopolitical chessboard that makes dominance over other people’s land the prime directive. But make no mistake, if you seek out the root cause analysis of the adventurism, it was about the MONEY! Its ALWAYSabout the money!

I don’t want to see anymore American treasure lost in the pursuit of fleeting gains and assuaging fragile egos and image.

Be cautious America, Be on your guard.                          I think we have seen this movie before.