Minnesota SF1488 exempts tip income from individual income tax and withholding requirements.

Minnesota SF1488 amends state tax law to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported to an employer or the Internal Revenue Service as wages. The bill modifies Minnesota Statutes sections 290.0132 and 290.92 to exclude tip income from tax withholding. The changes take effect for taxable years beginning after December 31, 2024.

Minnesota SF1488 exempts tip income from individual income tax and withholding requirements.

Minnesota SF1488 amends state tax law to exempt tip income from individual income tax and withholding requirements. Tip income is defined as amounts reported to an employer or the Internal Revenue Service as wages. The bill modifies Minnesota Statutes sections 290.0132 and 290.92 to exclude tip income from tax withholding. The changes take effect for taxable years beginning after December 31, 2024.