DEDUCTION FOR TIP INCOME (2025-2028)
01.Core Concepts
• Deduction for up to $25,000 of voluntary cash or charged tip income. • Available regardless of whether the taxpayer takes the standard deduction or itemizes deductions. • Deductible amount (after applying the $25k limit) reduced by $100 for each $1,000 by which MAGI exceeds $150,000 ($300k MFJ). • No deduction if MFS