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CPA Practice Advisor · Feb 11, 2026

Trump’s OBBBA Cut Taxes on Tips, But Here’s Why Servers in Illinois and Other States Will Still Pay

Tax Brief summary and classification of the original reporting.

Bottom Line

💡 Trump’s OBBBA Cut Taxes on Tips, But Here’s Why Servers in Illinois and Other.... Review and take action if applicable to your clients.

Summary

Under the One Big Beautiful Bill Act, U.S. workers can now temporarily deduct tips from their federal income taxes, up to a $25,000 limit. But Illinois is one of the states that are decoupling with the policy, so tipped income will still be taxed at the state level.

Classification

Category: heads upPriority: action neededReason: Contains 'big beautiful bill' - action may be required

Affected Groups

All tax practitioners

Related Topics

Original Source

We aggregate public tax updates and provide AI-assisted summaries. Please read the original reporting for full details.

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