Tip jar at a checkout counter. (iStock)
There are stipulations in the new bill: an employee with compensation exceeding $160,000 in the prior tax year would not be eligible to claim the new tax deduction for tips.
The bill is limited to cash tips received by occupations that are customarily tipped.
"Tipped occupations" are jobs where tips are common in the U.S., such as waiters, waitresses and professionals providing beauty services like barbering, hair care, nail care, esthetics, body and spa treatments.
U.S. Sen. Jackie Rosen, D-Nev., walks to the weekly Senate policy luncheon on June 25, 2019 on Capitol Hill in Washington, DC. (Tom Brenner/Getty Images)
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Sen. Jacky Rosen, D-Nevada, pointed out during her floor speech that this bill was one of President Donald Trump's key campaign promises.
"I am not afraid to embrace a good idea, wherever it comes from. So I agreed we need to get this done," she said.
The passing of this bill through the Senate occurs as congressional Republicans attempt to seek advancement of a massive tax cut and spending package that will create a tax break on tips for the next four years.
The next step is the House of Representatives before it becomes law.
https://www.foxnews.com/politics/senate-unanimously-approves-25000-tax-break-tipped-workers