Bill Detail

S. 2780

Congress: 119

Title

No Tax on Large Party Tips Act

Summary

No Tax on Large Party Tips Act 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. 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.

Sponsor

Sen. Ruben Gallego [D-AZ]

Status

Read twice and referred to the Committee on Finance.

Status as of Jun 29, 3:15 AM · synced 17h ago

Introduced

2025-09-11

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Bill Engagement