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💵 Today’s Top Stories
This form of identity theft is scary. But Clark has a great rule to protect yourself against these scammers. Read more.
What are we talking about? You can probably guess: AI. But it’s not just digitally decorating with eye-catching furniture. We’re talking erasing blemishes, distorting sizes and more, Clark explains. Read more.
Getting your internet from your cell phone provider can save you a lot of money, especially if you don’t need lightning-fast download speeds. Read more.
Companies can’t guarantee your identity will never be stolen. But this insurance can give you some financial support if it happens. Here’s the fine print — and whether Clark thinks you should get it. Read more.
💰 IRS Issues More Guidance on No Tax on Tips Provision
Signed July 4, 2025, the One Big Beautiful Bill included a No Tax on Tips provision allowing qualified employees to deduct up to $25,000 in cash tips from their federal income tax.
It’s an “above-the-line” deduction, so you can claim it even if you don’t itemize deductions.
There’s a phase-out based on income ($150,000 for single filers and $300,000 for joint filers). The provision also does NOT cover payroll taxes (Social Security, Medicare) or state income taxes.
The provision is set for the tax years 2025-2028. So why are we mentioning it now?
Because the IRS issued further guidance just last Friday. That includes more than 70 occupations that may receive tips that qualify for the deduction. Those fall into eight categories of jobs:
Beverage and food service (bartenders, wait staff, dishwashers, etc.)
Entertainment and events (musicians, DJs, etc.)
Hospitality and guest services (concierges, housekeeping staff)
Home services (repair workers, groundskeepers)
Personal services (event planners, photographers, personal care aides)
Personal appearance and wellness (hair and makeup stylists, personal trainers)
Recreation and instruction (tour guides, activity instructors, golf caddies)
Transportation and delivery (taxi and rideshare drivers, movers and delivery workers)
The IRS also clarified that tips must be paid in cash or via a cash-equivalent (credit or debit card) payment and must be voluntary (i.e., no auto-charged gratuity for large parties at restaurants).
Managers and supervisors who pool tips with employees aren’t eligible to deduct the money they earn specifically from those pooled tips.
📊 Stat of the Day
📺 >40%: Share of Americans who have “recently cut back on entertainment subscriptions because of financial concerns” according to a Deloitte survey. Three in four Americans “expressed frustration that the entertainment services they subscribe to continue to raise their prices.”
Here are Team Clark’s ideas to save on your streaming subscription costs.
💰 Deal Alert: Today’s Top Deals
🎙 Podcast
Deciding where to spend your retirement is one of the most significant transitions you’ll ever make, but it requires a systematic approach to get it right. Whether you plan to stay in your current home or relocate to a new destination, your environment directly impacts your long-term happiness. In this episode, Wes Moss shares tips to find — and afford — your dream community in retirement. Many retirees face the "housing overlap headache," where you find your new home in five minutes, but it takes five months to sell your old one. If you don't want to carry a mortgage or trigger a "tax tsunami," Wes breaks down a strategy that can help.
☎ Need Money Help?
The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.
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