Over half of Tennessee drivers have already obtained a Real ID
Beginning May 7, a Real ID or another federally-issued ID, such as a passport, became required to board commercial airline flights within the US or enter certain federal buildings. Air travelers who do not present a Real ID or passport may need to undergo additional security screenings.
What to expect at airports now that Real ID is being enforced
Of the approximately 5.8 million licensed drivers in Tennessee, over three million Real IDs have been issued since the department first began distributing them in July 2019. Nearly 12% of those have been issued in the last three months.
According to a state release, 1,860,265 have chosen not to obtain a REAL ID. Nearly 1 million are currently in the renewal cycle and have not yet made a selection.
REAL ID: When you need one and when you don't
There is no cutoff for Tennesseans to apply for one. They can be obtained at any Driver Services Center and some county clerk's offices. Individuals must provide documentation proving U.S. citizenship or legal presence, their Social Security number, and two proofs of Tennessee residency.
▶ See more top stories on WATE.com
'Reaching this milestone reflects the commitment of our Driver Services team across the state,' said Commissioner Jeff Long. 'From front-counter staff to back-office personnel, our employees have worked diligently to process REAL ID applications and serve the public in a timely, professional manner. Their efforts helped us get as many Tennesseans ready as possible before the federal implementation date.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Axios
10 hours ago
- Axios
Tennessee immigrant group sues over raid records
A Tennessee nonprofit is suing to get access to records tied to an immigration crackdown that roiled Nashville. Why it matters: Authorities arrested about 200 people during an immigration sweep in May. They've released some details but have not provided records for all of the arrests. Catch up quick: U.S. Immigration and Customs Enforcement and Homeland Security agents worked with the Tennessee Highway Patrol to conduct scores of traffic stops in south Nashville, which is home to many Hispanic residents. Metro police officers were not involved. Zoom in: The Tennessee Immigrant and Refugee Rights Coalition (TIRRC) requested public records on the operation. "Although the Tennessee Highway Patrol produced some records, it also implausibly denied the existence of others, redacted some groundlessly, and delayed its production of video footage to the point of denial," the TIRRC said in a statement. The group filed a complaint Thursday in Davidson County Chancery Court saying the THP was violating public records laws. What she's saying:"The Tennessee Public Records Act ensures that ordinary Tennesseans can access information about how their government works and how state authority is being exercised in their name," TIRRC executive director Lisa Sherman Luna said in the statement.
USA Today
12 hours ago
- USA Today
Automatic gratuities may not be eligible for new Trump tax break on tips
I don't like to think of myself as a bad tipper. Yet, I handed over what had to be a head-scratching tip about "no taxes on tips" to a waiter in Detroit one Saturday night in July. Did he realize that the automatic 20% tip on the bill at Andiamo's Detroit Riverfront could mean that he wouldn't get a tax break? We've heard plenty of "no tax on tips" talk this summer as President Donald Trump's "big, beautiful bill" worked its way through Congress to ultimately be signed into law July 4. Still, not much has been in the headlines about one possible trigger for tax-time indigestion involving tip income when a restaurant has an automatic gratuity on the bill. My waiter, though, wasn't about to engage in tax tips. He was waiting for his real one. He cut the conversation short by saying that "no tax on tips" will kick into gear next year so it doesn't matter now. He was only partly correct. What does 'no tax on tips' mean? The new, special tax break on tips is retroactive and applies to eligible tip income earned in all of 2025. Waiters, hairstylists and others who regularly receive tips this year will have to wait until next year to claim a deduction for tip income reported on their tax returns when they file 2025 returns. The special deduction can save plenty of workers good money whether they itemize their deductions or claim the standard deduction, as most people do these days. The tax break runs from 2025 through 2028. Employers still are required to withhold taxes from each paycheck for Social Security and Medicare, which are referred to as FICA or payroll taxes. About 6 million workers report tipped wages, according to the White House, including "waitresses and waiters, rideshare and food delivery drivers, taxi drivers, beauticians, hairdressers." By contrast, the Budget Lab at Yale University estimates that roughly 4 million people worked in occupations where workers regularly received tips in 2023 — or about 2.5% of all employment. Tipped workers tend to be younger than the rest of the U.S. workforce, with a median age of 31 years old, according to Budget Lab. One third of tipped workers, according to the study, are younger than 25. A sizable group had such low incomes — some 37% —that they faced no federal income tax in 2022, even before accounting for tax credits, such as the earned income tax credit, according to Budget Lab. Preparing for taxes: Will the 2026 tax season start late? IRS commissioner sparks speculation The IRS might treat 20% automatic tip differently Like many of the new tax breaks packed into the big, beautiful bill that I've written about this summer, some rules will trigger situations where "no tax on tips" still translates into a tax bill. Nothing is as simple as the catchphrase. The 2024 presidential race will be remembered for Trump's promise of "no taxes on tips." Eliminating all taxes on tips, though, isn't on the menu when you peruse the big bill. Simply put, some complex rules will determine what tips will still be taxed and what tips won't be taxed under a new deduction for tipped income. And tax professionals remain on edge now, waiting for the Internal Revenue Service to issue more guidance. Waiters and others who benefit from automatic gratuities of 20% or more could be in for quite a shock, according to some early analysis. Tom O'Saben, enrolled agent and director of tax content and government relations for the National Association of Tax Professionals, and other tax experts are raising red flags about "mandatory tips." "When a restaurant automatically adds a 20% service charge, that amount is considered a mandatory service fee, not a tip under the IRS's rules — and not eligible for the new tip income tax deduction," O'Saben told the Detroit Free Press, part of the USA TODAY Network. The IRS, he said, takes the position that a tip must be voluntary, not required by the employer or establishment, paid freely by the customer and given directly or indirectly to the worker to qualify for the tax break. It's likely, O'Saben said, that servers will still be required to pay taxes on automatic gratuities. Again, we have yet to see whether the IRS offers guidance that specifically excludes mandatory service fees from being eligible for the tax deduction for tip income. But tax professionals see the writing on the wall. Janet Holtzblatt, senior fellow at the Urban Institute-Brookings Tax Policy Center, shares a similar viewpoint about potential exclusions. According to the new tax act, Holtzblatt said, tips that qualify for a tax break involve amounts that are 'paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor.' These simple words, "'voluntarily and determined by the payor,' may make a big difference in paychecks," Holtzblatt wrote in a July 24 blog that urged quick guidance from the IRS to clarify key details that Congress left unresolved. "Workers might be very disappointed if the IRS relies on the same guidance used for the existing credit for employers' share of Social Security taxes paid on tips," she said. She noted that it has been estimated that 16% of restaurants regularly add a service charge to the bill, and 54% sometimes do, such as for larger groups of six or more people at a table. The issue is particularly of concern, Holtzblatt said, in areas, like Washington, D.C., where 20% service fees are increasingly part of bills being handed to consumers. There's another wrinkle to the treatment of service fees, she said. While they look like a gratuity, the service fee may also cover part of the owner's nonlabor costs. Restaurants wait for more IRS guidance Restaurants find themselves still navigating the new tax rules and waiting for IRS guidance. Peter Gray, chief financial officer for the Joe Vicari Restaurant Group, which includes Andiamo Detroit Riverfront, told the Detroit Free Press that the tax laws surrounding tips and tip credits are still very new, and the rules and regulations are still developing. "We are working closely with our team members and payroll company to ensure everybody is educated properly on these new tax laws and how they need to be handled and reported," Gray said in a statement to the Free Press. "This will also require some additional guidance from the IRS on these new laws so we can ensure we are handling things properly and making decisions that are best suited for our company and team members." Beverly Hills Grill in Oakland County, which adds an automatic 20% gratuity onto its bills, plans to continue the practice right now, but owner Raphael Michael is "reviewing all the guidelines with his CPA and financial advisers," according to spokesperson Sari Cicurel. According to the restaurant's certified public accountant, Cicurel said, the automatic gratuity of 20% is not mandatory and "no tax on tips" would apply to the restaurant's employees. The IRS fact sheet listed on its website says "no tax on tips" applies to qualified tips that are "voluntary cash or charged tips received from customers or through tip sharing." These tips, the IRS stated, "are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137." During the 2025 transition, O'Saben said, the IRS will permit reasonable estimates for the deduction period. But, he said, the IRS is going to require that companies ultimately update their payroll systems and earnings codes. Some changes could be ahead for 'mandatory' tips Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting in Riverwoods, Illinois, said he'd expect that restaurants would need to shift away from mandatory tips or service fees for employees to qualify for the deduction. "The provision requires that the tip be 'voluntarily given,' which would appear to exclude automatic add-ons," Luscombe said. Scott Klein, senior manager for tax policy and advocacy with the American Institute of CPAs, throws another wrinkle into the mix. Klein agrees the IRS will likely view an automatic gratuity as a tip that is not voluntary and does not qualify for a tax break. "However, any discretionary amount given as a tip in addition to the service charge would be considered a qualified tip," Klein said. Add another $5 on top of a $20 automatic gratuity, for example, and he'd say that extra $5 should be eligible for the tax deduction. "This tip provision could be a reason for restaurants to reapproach the decision to charge an automatic gratuity," Klein said. The IRS will tell us more by October By Oct. 2, the IRS is expected to release a list of "approved tip recipients" who could qualify for the "no tax on tips" tax deduction. We're talking about a new tax deduction for those who work in jobs where cash tips are typically expected. The IRS will be looking at whether the workers "customarily and regularly" received tips before Jan. 1, 2025, to prevent abuse, such as someone suddenly classifying regular wages as tips. "The approved list may not extend far beyond the restaurant, beverage, hospitality and hair care industries specifically mentioned in the legislation," Luscombe warned. Yet, Klein said consumers are experiencing a growing prevalence of tipping across industries so some additional industries might be included in the IRS list. Given some of the uncertainties now, Klein said, employers and employees should keep an accurate account of tips received so that they can account for them if the new federal income tax deduction allows them a tax break. Remember, employees can deduct only tips that are properly reported to employers and reflected on tax statements. (And, yes, some did not report all of their tip money, especially what was received in cash, to the IRS over the years.) Workers still must report all tips to their employers if they total $20 or more in a single month, according to the Budget Lab. Employers, Klein said, should continue to track tips, and should identify and categorize automatic and voluntary gratuities separately as they await more guidance. Tipped restaurant workers already are required to report tips earned during a shift and tips are already listed on a separate line on their annual W-2 form and that's not expected to change, according to the National Restaurant Association. Klein said he expects the IRS to give more details on how the agency plans to implement the deduction on Form 1040. The IRS is expected to update withholding procedures. He'd expect the creation of a worksheet for the "no tax on tips" deduction that will likely include a modified adjusted gross income calculator for the tip deduction phaseout and occupation codes for tip eligibility. How much in tips could be tax free? The "no tax on tips" break could disappoint some who generate a great deal of money in tips during a year — especially if both spouses work in such jobs. The new law appears to stipulate that the maximum annual deduction for tip income is $25,000 per tax return — not $25,000 for each employee listed on a joint return, according to how O'Saben and Luscombe read the tax bill. We will need more clarity from the IRS guidance. For reference, the maximum deduction for the new tax break on overtime pay is $12,500 for singles and $25,000 for joint filers each year. Married people who file separately — even if one earned $20,000 in tips — are not permitted to claim the "no tax on tips" deduction at all. They would owe taxes on all their tip income. What's straightforward: Will a $25,000 limit for the deduction cover everyone's tips for the year? O'Saben said part-time or lower-volume workers might see that all or most of their tips will qualify for a tax break at the $25,000 threshold or less. According to an example give by the Bipartisan Policy Center, a single taxpayer earning $50,000 — including $5,000 in tips — could save $600 with the new tax deduction on tip income. But some high-volume servers, servers at high-end restaurants, those working in luxury hospitality, and casino workers are the most likely to earn a great deal of tip income. While many might still save thousands of dollars in taxes, experts say many of these taxpayers would owe taxes on tip income above the $25,000 threshold. Luscombe noted that the Congressional Research Service issued an "In Focus" on July 31, 2024, that estimated the median tip income was $2,600 each year while the average tips income was $6,000 per year, indicating that there are a few tip recipients who receive a large amount in tips, raising the average. But some won't get any tax break at all — if they had so little income that they're not paying taxes. Almost any single taxpayer making less than $15,750 and married couples making less than $31,500 in 2025, according to the Bipartisan Policy Center, will pay nothing in federal income taxes already due to taking the standard deduction. As a result, an additional tax deduction on tip income tips will not benefit those taxpayers because it does nothing to reduce their tax liability further. The White House states online that workers on average will receive about $1,300 more from "no tax on tips" each year that the tax break remains in place. We're dealing with a lot to digest here. Maybe it doesn't hurt to think of these tax breaks like tiramisu. The Italian dessert never quite tastes the same no matter where you order it. Ditto for "no tax on tips." How much this tax break pulls you up will depend on where you work, what kind of tips you get and more. Contact personal finance columnist Susan Tompor: stompor@ Follow her on X @tompor.
Newsweek
12 hours ago
- Newsweek
Social Security Warning Over Changes Issued by Bernie Sanders
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Senator Bernie Sanders issued a warning about potential changes to Social Security implemented by the Trump administration on the program's 90th anniversary this week. A Social Security Administration (SSA) spokesperson told Newsweek on Friday: " As Commissioner Bisignano has repeatedly emphasized, ensuring the long-term financial health of these trust funds remains a top priority. The Social Security Administration is committed to working with Congress and other stakeholders to protect and strengthen these vital programs, ensuring that millions of Americans can continue to rely on Social Security for a secure retirement and support in times of disability—both now and in the future." Why It Matters August 14 marked the 90th anniversary of Social Security, relied on by millions of Americans who receive retirement, survivor and disability benefits. About 74 million people receive benefits administered by the SSA, the agency said in July. While the program remains broadly popular among Americans, the program has faced questions about whether it could become insolvent as soon as the 2030s without significant reform. Many Americans are concerned about potential cuts to the program or that individuals who are paying into Social Security may not receive benefits when they reach the age of retirement. Senator Bernie Sanders, a Vermont independent, speaks during the Democratic National Convention on August 20, 2024. Senator Bernie Sanders, a Vermont independent, speaks during the Democratic National Convention on August 20, 2024. CHARLY TRIBALLEAU/AFP via Getty Images What To Know Sanders, a Vermont independent who caucuses with Democrats, sounded the alarm about changes to the program in a video posted to X on Thursday. He warned that individuals like President Donald Trump and Elon Musk, the billionaire who led the Department of Government Efficiency (DOGE) before his falling out with Trump, have been "working overtime to try to dismantle Social Security and undermine the confidence that the American people have in it." "Since Trump took office, his administration has fired at least 7,000 employees at the Social Security Administration, shut down Social Security field offices and made it more difficult for seniors and the disabled to receive the benefits they have earned over the telephone," he said. SSA field offices lost nearly 5 percent of their staffs between March 2024 and March 2025, according to union data from the AFGE Social Security General Committee. Some states, however, saw more than 10 percent of SSA workers leave in that time. Sanders also ripped claims by DOGE that millions of Americans who had been marked deceased, some up to 360 years old, were still receiving benefits as an "unmitigated lie." "Our job today is to stop any and all efforts to destroy Social Security," Sanders said, touting new legislation that would reverse Trump administration cuts to the SSA and prevent the closure of field offices. Trump released a statement Thursday pledging to defend Social Security, "rewarding the men and women who make our country prosperous, and taking care of our own workers, families, seniors, and citizens first." He wrote that his efforts to "aggressively" root out waste and abuse, which includes "stopping payments to the deceased and eliminating benefits for those who do not legally qualify," will strengthen the program. "These measures will save American taxpayers billions of dollars every year and ensure that future generations receive the benefits they spent their lives paying into. At the same time, I am making the Social Security Administration more efficient, more responsive and more effective than ever before—reducing wait times and delivering the payments the American people worked hard to earn," Trump wrote. A YouGov poll released in March found that 54 percent of Americans believed Social Security cuts would have a negative effect on their financial security. Only 13 percent said it would have a positive effect, while 16 percent said it would have no effect. The poll surveyed 3,567 adults on March 12. What People Are Saying Senator Bernie Sanders, a Vermont independent: "In a world of complexity and uncertainty, Social Security has done exactly what its name implies. It has provided rock bottom security for our nation's elderly and disabled." Senator Sheldon Whitehouse, a Rhode Island Democrat, on X: "Right now, the Trump administration and Republicans in Congress are quietly creating problems for Social Security so they can later hand it off to their private equity buddies." Elon Musk told Fox News in March: "What we're doing will help their benefits. Legitimate people, as a result of the work of DOGE, will receive more Social Security, not less." What Happens Next Social Security remains a challenge that Americans will face over the coming years as lawmakers work to prevent the program from going insolvent.
