HI HB567

Adds a new tax deduction for tips received by tipped employees, allowing deduction of tips included on statements furnished to employers for Federal Insurance Contribution Act purposes.

Defines "tipped employee" as an employee working in an occupation receiving more than $30 per month in gratuities.

Defines "tips" as gratuities or voluntary monetary contributions received by an employee from guests, patrons, or customers that are reported to the employer for Federal Insurance Contribution Act purposes.

Directs the Director of Taxation to prepare necessary forms, require proof of claims, and adopt rules under Chapter 91 to administer the deduction.

Applies to taxable years beginning after December 31, 2025.