# 119-hr-558: Tip Tax Termination Act

119-hr-558, Tip Tax Termination Act, is a 119th Congress bill sponsored by Rep. Bacon, Don [R-NE-2] (R-NE); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-558
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-558
- Congress: 119
- Title: Tip Tax Termination Act
- Status: introduced
- Introduced: 2025-01-20
- Sponsor: Rep. Bacon, Don [R-NE-2] (R-NE)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

This bill would **exclude up to $20,000 of tips from federal taxable income** each taxable year through 2029. It targets workers in cosmetology, hospitality, and food service. - Workers: People in cosmetology, hospitality, and food service would not include up to $20,000 of annual tips in federal gross income for amounts received after Dec. 31, 2024 and before 2030. - Tax credits and deductions: The excluded tips would generally be excluded from most deductions and credits, but they would still be counted when calculating the Child Tax Credit and the Earned Income Tax Credit. - Withholding and payroll: The Treasury Department would have to modify federal income tax withholding tables and procedures so wage withholding reflects tips that can be excluded.

## Provisions PRIA read

- Tax break on tips for workers: benefit, high. If enacted, you could exclude up to $20,000 of eligible tips from your taxable income each year. It would cover jobs that rely on tips, like food service, hospitality, and cosmetology. The rule would apply to amounts received after December 31, 2024, and end after December 31, 2029. Excluded tips w…

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-4393: DIGNIDAD (Dignity) Act of 2025
- 119-hr-5442: Inspired to Serve Act of 2025
- 119-hr-6976: Duty Status Reform Act
- 119-hr-2913: Ukraine Support Act

## Sources
- [119-hr-558 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/558)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-4393: DIGNIDAD (Dignity) Act of 2025](https://policyrisk.com/legislation/119-hr-4393)
- [119-hr-5442: Inspired to Serve Act of 2025](https://policyrisk.com/legislation/119-hr-5442)
- [119-hr-6976: Duty Status Reform Act](https://policyrisk.com/legislation/119-hr-6976)
- [119-hr-2913: Ukraine Support Act](https://policyrisk.com/legislation/119-hr-2913)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-558 (as of 2025-12-21).