>tips are no longer taxed Tips (if reported) are always subject to 7.65% FICA tax. And there are several conditions that must be met before tips are excluded

>tips are no longer taxed Tips (if reported) are always subject to 7.65% FICA tax. And there are several conditions that must be met before tips are excluded from federal (not necessarily state) income tax. (U.S. tax law). In short, many tips are still fully taxed despite false promises to the contrary.