Minnesota HF1221 exempts tip income from individual income tax and withholding requirements.

Minnesota HF1221 amends state statutes to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported by an individual to their employer or the Internal Revenue Service. The bill modifies Minnesota Statutes sections 290.0132 and 290.92 to exclude tip income from tax withholding. This change takes effect for taxable years beginning after December 31, 2024.

Minnesota HF1221 exempts tip income from individual income tax and withholding requirements.

Minnesota HF1221 amends state statutes to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported by an individual to their employer or the Internal Revenue Service. The bill modifies Minnesota Statutes sections 290.0132 and 290.92 to exclude tip income from tax withholding. This change takes effect for taxable years beginning after December 31, 2024.