"No Tax on Tips" Progress for Gig Workers! - EVERYTHING You MUST Know!! (So Far) The Good, the Bad, and the Reality

So one of Donald Trump's main points for his Presidential candidacy run was the promise of “No Tax on Tips”, which I have made videos about in the past and some of these updates have had impacts on how Gig Workers would be treated during these processes.

So in this article, We are talking about:

• The most recent progress made on the "No Tax on Tips" policy

• What they are saying vs how it ACTUALLY is

• Everything in between!

Disclaimer: The content of this article does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This article is for entertainment purposes only. It is advised that you conduct your own research and consult with qualified professionals before applying anything you find online. 

I also want to be clear that this is not a political website and never has been a political website, I am simply bringing the information on this because this affects gig workers in a meaningful way.

Which is also why I am breaking this down deeper than simply reading an article to make sure the information is clear and authentic, with as little political bias as well.

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Changes to the Bill

One of the previous concerns is that Independent contractors would be excluded from being a part of the benefits that this bill would come with. Which is not unheard of but nevertheless important, after all we should have access to those benefits as well.

Now that said, we also have opportunities to deduct where W-2 employees do not as well so there is something to be said there. That didn’t stop Doordash and Uber from getting involved in the conversation though.

In fact, with the new changes their quotes from their X posts are now featured on the White House website.

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Uber CEO Dara Khosrowshahi: “We’ve said from the start: No Tax on Tips should include @Uber drivers & couriers. Grateful the new House Ways & Means bill does just that. Thanks to @POTUS and @RepJasonSmith for backing all tipped workers—no matter how they work. Let’s get this done!”

Did you know we are also on X? Follow us here

DoorDash CEO Tony Xu: “Thanks to @POTUS and @RepJasonSmith, millions of Dashers may soon get a tax break on their hard-earned tips. Following advocacy from 40K Dashers, including dozens in DC last week, the House’s budget bill is an important step in making #NoTaxOnTips a reality.”

Meaning just as you heard it, No Tax on Tips now includes independent contractors. However there is a catch that is not so beneficial to all gig workers.

Not Entirely What it Seems

The policy for this is not simply “No Tax on Tips”, it is simply a deduction given to those who earn by tips, which includes a maximum deduction of $25,000. Which is not good for those who do gig work full time, or servers in well off areas that make so much more than that in tips.

“A relatively small number of workers are going to see any significant tax savings from this proposal,” said Joseph Rosenberg, a senior fellow at the left-leaning Urban-Brookings Tax Policy Center.

For those doing gig work part time though, this can be good for them because they practically write off all of their earnings. This encapsulates a significant number of gig workers in the delivery space.

This also might actually be a good thing to fight against fraud conducted by gig companies, one of the most common points about this bill that was brought up by gig workers was this would give Doordash and Uber the opportunity to commit more fraud because tips aren’t taxed.

For a multimillion dollar company however, that is a drop in the bucket. That also said, that would also mean that they would need to be properly investigated which may or may not happen.

Will This Become Law?

There is still no guarantee that this will come to law. While it does look good and made it through the Senate unanimously, it barely made it through the House. There is also concern on how few people this ACTUALLY helps.

While this may be big for gig workers and servers predominantly in Nevada, in a state like Michigan it can just be seen as an excuse to keep paying “subminimum wage”, which can lead to push back as the “Big beautiful bill” makes its way to law. 

Either way, whether this ends up being law or not, it is important that you consult with qualified tax professionals when it comes to your taxes. You also want to make sure you are also saving as much money as possible when looking for a professional as well.

Some tax professionals may see the accumulated 1099s to charge you more for your work than necessary, and to help you save as much money on your taxes as possible, GigTax is here to help.

Use the code "wyld" in all lowercase to access the site

Whether you are a rideshare driver, delivery pros, online sellers or otherwise, we need to stop letting taxes eat into your earnings. As someone who grinds everyday, taxes don’t have to slow you down. 

GigTax was built by Joseph Mayo, a seasoned gig worker who’s been in the trenches with 7,000 deliveries across 7 platforms, he understands the challenges and tax benefits that gig workers can capitalize on.

Enjoy exclusive perks like electronic and state filing, secure portal access, year-round support from a dedicated tax pro, and audit protection—all included.

“I had a lot of backed-up taxes and complications. Joseph worked tirelessly to file previous years’ taxes and maximize my return beyond what I could’ve done on my own.”

— Min, Entrepreneur

Ready to keep more of what you earn? Book your strategy session at gigtaxservice.com/drivenwyld and use code “wyld” for website access. Simplify and save with GigTax today!

If you would like to add some other perspective to this "No Tax on Tips" update, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!