Minnesota SF1006 exempts tip income from individual income tax and withholding requirements.

Minnesota SF1006 amends state statutes to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported to an employer or the IRS as required by the Internal Revenue Code. This exemption applies to taxable years beginning after December 31, 2024. The bill modifies existing tax code sections to clarify that tip income is not subject to withholding, aligning state tax law with federal definitions and reporting requirements for tips.

Minnesota SF1006 exempts tip income from individual income tax and withholding requirements.

Minnesota SF1006 amends state statutes to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported to an employer or the IRS as required by the Internal Revenue Code. This exemption applies to taxable years beginning after December 31, 2024. The bill modifies existing tax code sections to clarify that tip income is not subject to withholding, aligning state tax law with federal definitions and reporting requirements for tips.