United StatesNo Tax on Large Party Tips Act
What it does
This bill expands the federal tax deduction for qualified tip income to include tips that are automatically added to a customer's bill and tips that are suggested tips prompted by a business by treating such tips as voluntarily paid.
More detail
As background, for 2025 through 2028, individuals may claim a tax deduction of up to $25,000 per year for qualified tips received in occupations that customarily and regularly receive tips. However, one of the conditions for claiming the tax credit is that the tips must be voluntary, determined by the customer, and nonnegotiable.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Sep 11Introduced in SenateLatest
- Sep 11Read twice and referred to the Committee on Finance.Introduced