Both the House and Senate versions are structured as deductions, not full exclusions of tips from taxable income. So, workers would still report their tips and claim the deduction when filing their taxes, rather than having tips automatically excluded from taxable income.

Congress is likely to pass a tax cut on tipped wages this year. What we know about President Donald Trump's "one, big, beautiful, bill."

The bill to exempt tips from federal income tax, an idea that President Donald Trump campaigned on, will now go to the House of Representatives for a vote.