Miller-Meeks: Working Families Tax Cuts Reduce Taxes on Tips for Service Workers

IOWA — Congresswoman Mariannette Miller-Meeks highlighted provisions of the Working Families Tax Cuts, legislation she supported that was signed into law by President Trump and reduces federal taxes on tips, allowing service workers to keep more of their hard-earned income.

The reform delivers meaningful tax relief to workers who rely on tips as a core part of their paycheck. Nearly 6 million Americans report tipped wages, and under the new policy, workers earning under $150,000 annually can deduct up to $25,000 in qualified tips each year.

The legislation also provides relief for workers who put in extra hours to support their families by allowing a deduction of up to $12,500 in qualified overtime pay.

For service workers in Iowa, the impact is expected to be significant. In the first year alone, tipped workers across the state are projected to save approximately $59 million in federal income taxes, putting more money back into the pockets of hardworking Iowans.

Rep. Miller-Meeks issued the following statement:

“Hardworking Americans deserve to keep more of what they earn. For millions of workers across our country—especially in restaurants and the service industry—tips are not extra income. They are a vital part of a paycheck.

“The Working Families Tax Cuts reduce taxes on tips so service workers can keep more of the money they work hard to earn. In Iowa alone, this reform is projected to save service workers approximately $59 million in federal income taxes in the first year.

“Reducing taxes on tips rewards hard work, strengthens families, and supports the small businesses that power our local economy. I will continue fighting in Congress to ensure hardworking Iowans can keep more of what they earn.”

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