Let’s be real. When we first heard about the No Tax on TIPS Act, most of us thought, “Sweet! One less thing to report, track, and lose sleep over.” But—as with all things in the tax world—it’s a bit more complicated than that. And just like that RV fridge you thought was working fine until it turned your yogurt into a science experiment, things may not be what they seem.
As the bill bounces through Congress like a beach ball at a Jimmy Buffett concert, campground owners, service-based businesses, and yes—even dreamers with tip jars at the general store—are left scratching their sunburned heads wondering, “Is this good for me? Or is this a trap dressed in cowboy boots?”
We’ve got answers. (Well, mostly. It’s tax law—we can’t promise all answers.)
The No Tax on TIPS Act (HR482) is designed to eliminate federal income tax on tips for service workers. It’s not law yet, but with Trump backing it and momentum building, you’d be wise to prepare like it’s already here.
So what does that mean for you? First, it’s time to update your payroll systems to separate tip income from base wages—especially if you want to avoid the chaos of retroactive reporting. Pro tip (pun fully intended): platforms like Gusto or OnPay make this easy-peasy.
Here’s the psychological curveball: if workers don’t have to pay tax on tips, they might start reporting them accurately (gasp!). They could even over-report if they’re trying to show higher wages for a car loan or mortgage.
And guess what? That honesty could drive up your payroll tax liability—you still have to match those numbers. So, while your team’s buying new campers, you might be footing a bigger tax bill than ever before.
Campground owners ask the big questions. Like, “What if we added a tip line to our invoice for RV check-ins?”
Nice try, but the bill only applies to occupations that traditionally received tips before December 31, 2023. That means your dream of becoming a tip-rich CPA or campground concierge might have to wait. Or move to Vegas.
Oh—and if you earned more than $160,000 last year from the same employer? You're automatically out. Go cry into your tax-free mimosa.
Look, we know the campground lifestyle is supposed to be relaxed. That’s why Campground Accounting exists—to help you make more money without feeling like you’re stuck in a maze of regulations, payroll forms, and government lingo.
Whether this bill passes or not, one thing’s clear: your strategy matters more than ever. Prepare now. Track tips smartly. And make sure you’ve got a financial plan that can handle whatever Uncle Sam throws your way next.
Because while the law might change, the need for smart, proactive business decisions never does.
Your campground deserves more than tax drama. It deserves peace of mind, streamlined reporting, and a financial plan that’s as sturdy as your favorite fifth-wheel.
So go ahead—press play on the bigger dreams. Just let us keep watch over the fine print.
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.