Latest News

Candidate Trump Offers a Glimpse of Potential Tax Strategy

In his June 9 Las Vegas rally, presumptive Republican presidential nominee Donald Trump announced his intent, if elected, to exempt tip income from “federal taxation.” Left undefined, though, is whether he’s referring to federal income tax or FICA tax (the 6.2% payroll tax assessed on all workers and employers). For a recap of Trump’s remarks, including a recording of his specific comments, take a look at this article by Julianna Frieman.

While exempting tips from income tax is one thing, not assessing FICA tax on tip income is something entirely different, given the Social Security Handbook guidance that “Cash tips you receive in the course of employment by any one employer are wages if the tips total $20 or more in a calendar month.” For workers receiving most of their career income via gratuities, this exemption could have a significant impact on the average indexed monthly earnings (AIME) portion of their eventual benefit calculation.

The link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or

What's Your Opinion?

We welcome your comments. Join the discussion and let your voice be heard. All fields are required

Website by Geiger Computers