Tax Navigation by PaperWerks
New Deduction for Qualified Tips (2025–2028): What Tipped Workers Need to Know
by: John B Love IIIPublished on: 02/01/2026A plain-English breakdown of the new qualified tips deduction available for 2025–2028, including what counts as tips, reporting requirements, income limits, and who may not qualify.
qualified tips deductiontip income taxestipped employees reportingForm 4137 unreported tipsallocated tips W-2 box 8daily tip record Form 4070Acash tips vs service chargesMAGI phaseout tips deduction.SSTB specified service trade or business2025 tax changes tips
