Rules
- Up to $25,000 of qualified tips per return (not per person), 2025–2028.
- Reduced by $100 per $1,000 of MAGI over $150,000 ($300,000 joint).
- Tips must be voluntary and received in an occupation on the IRS list of tipped jobs.
FAQ
Do I need to itemize to deduct tips?
No. It is available with the standard deduction.
Sources (checked Nov 6, 2026): IRS FS-2025-03; P.L. 119-21 sec. 70201.