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No Tax on Tips Deduction: How It Works and Who Qualifies (Tax Years 2025–2028)

Up to $25,000 of qualified tips can be deducted for 2025 through 2028 if your occupation is on the IRS list, the tips were voluntary and reported, and you have a valid SSN and file jointly if married. Here is how Schedule 1-A applies the cap and phase-out.

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