Hi, Nevadans!

I’ve made an appointment with my tax preparer to file this year, have you? A couple of years ago, I used the IRS’s free DirectFile program when it first became available, but it was discontinued this year. The IRS still has free filing tools if you qualify. You just have to download one of the self-filing software programs (in contrast to Direct File, which worked in a web browser).

And if you work in the hospitality and food and beverage industries or simply accept tips from customers, here’s what you need to know when filing this year, with ‘No Tax on Tips’ in effect.    

In today’s newsletter:

Thanks for reading!

Cutting taxes on tips became a cornerstone campaign issue last year for both President-elect Donald Trump and Democratic nominee Kamala Harris. (Getty Images)

By USA Today Network via Reuters Connect

Tax returns filed in 2026 will be the first with the “No Tax on Tips” policy in effect—and it may be confusing for some filers because not all tipped occupations qualify and neither do all tips.

It mainly applies to certain tipped workers where they are voluntarily paid by customers without mandatory service charges or without compulsion. That means if you’re part of the wait staff serving a large party that has a mandatory 18% gratuity, such a tip does not qualify and will face federal income taxes.

The “no tax” policy also tops out at $25,000. Tips received after reaching that amount do not qualify.

And if a taxpayer’s income is over $150,000, then the benefit starts to phase out.

Some taxes still apply to tips. If a worker’s tips are reported, they’re still subject to other taxes—payroll taxes for Medicare and Social Security are still required to be paid for declared tips. 

Heavy afternoon freeway traffic on Interstate 215 in Las Vegas, Nevada. (Felipe Sanchez/Shutterstock)

By Nevada Current

Contributing factors to Nevada’s high auto insurance rates, which are among the 10 most expensive in the country, range from higher car accidents from “riskier driving behavior” in Southern Nevada to “ongoing economic volatility.”

Lawmakers said they’ve heard from constituents who can no longer afford high costs of auto insurance either becoming under insured or lacking insurance altogether.

While no specific policy solution was discussed at length during the hearing, lawmakers are hoping to continue analyzing potential policy initiatives between now and early next year when lawmakers next convene in a regular legislative session.

🟣 NV Energy to pay more than $63 million to overcharged customers. Nevada Current

“Under the PUC order approved Tuesday, NV Energy is expected to issue bill credits and checks within 120 days and no more than 210 days. The utility agreed to employ the same terms for newly-discovered overcharges resulting from misclassification.” 

🟣 Latino organization funds community protection grant. KNPR

“[With the grant] Make the Road Nevada will train people to be legal observers and properly document any ICE enforcement issues. Funds will also be available to help families with short term financial needs as well as with mental health support.”

🟣 Nevada DMV admits to talking with ICE on encrypted app, walking back court argument. The Nevada Independent

“The revelations raise new questions surrounding how ICE communicates with the DMV, which would have information on undocumented immigrants … The agency’s use of Signal — which allows users to auto-delete messages — also raises questions about if it is running afoul of state public records law.”

🟣 Nevada legal battle against ‘unlicensed sports gambling’ moves forward. NBC News

“A judge on Tuesday denied the company’s request to block the state from taking civil action against it. Nevada regulators claim that Kalshi, through its prediction market contracts, is offering people a way to illegally bet on sports. Kalshi argues it’s merely a financial exchange.”

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Thanks for reading. This newsletter was written by Jannelle Calderón with stories from Nevada Current and USA Today Network via Reuters Connect. It was edited by Paula Solis.

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