No Tax on Tips Explained: What the New Law Means for Workers & Businesses

Grab your latte and your ledger—because this episode of Unfiltered Profit breaks down a hot new tax update that has everyone from beauty salon owners to restaurant managers buzzing: the “No Tax on Tips” provision in the OB3 bill.So, what’s the deal? Is it really no tax? Does it start now? Will your clients (or your employees) be drowning in IRS love letters? We’re answering all that and more with Caitlynn, who’s been reading tax code like it’s her latest thriller.Here’s what we unpack:Why “no tax” is a bit of a marketing move (spoiler: you’re still seeing withholdings in your paycheck)The difference between "income tax free" and "still paying Social Security & Medicare"Who actually qualifies (Hint: you can’t start pretending your consulting clients are tipping you $2K on a $10 invoice)What business owners need to actually do (or not do)Why your reporting systems could use a glow-up, especially if you’re still lumping in tips with service incomeHow this impacts Schedule C filers and what limitations apply if you're self-employedWhat kind of planning you should be doing now to take advantage of the deduction when filing in 2026This is the kind of episode that makes tax talk...dare we say it? Fun. Plus, you'll walk away smarter than your average tax-season-dreaded bear.If you’ve got employees who earn tips, or your clients do, or you are the client who needs help staying compliant (and minimizing your tax bill)—you’re going to want in on this one.Key takeaway? If you’re not reporting tips correctly, you could be leaving money on the table—or worse, setting yourself up for a tax-season headache.Want even more of our favorite tax tips? Grab our free guide right here and stay ahead of tax season without breaking a sweat. RESOURCES + LINKSWork with Prospera: HEREFOLLOW + CONNECT  Connect with Prospera: Website | Instagram | FacebookLiked this episode? Share it on social and tag me @justprosperaLove the show? Leave a 5-star review and let me know!