Tax Navigation by PaperWerks

New Deduction for Qualified Tips (2025–2028): What Tipped Workers Need to Know

New Deduction for Qualified Tips (2025–2028): What Tipped Workers Need to KnowBy: John B Love III Published on: 02/01/2026

A 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.

DeductionsTipsPayrollMAGI phaseout
New Deduction for Qualified Tips (2025–2028): What Tipped Workers Need to Know