Politiparty
Politiparty

119th Congress Taxation

S. 2780: No Tax on Large Party Tips Act

Introduced

  1. Introduced (completed)Sep 11, 2025
  2. Passed Senate (not reached)
  3. Passed House (not reached)
  4. To the President (not reached)
  5. Became law (not reached)

Summary

Introduced in Senate, Sep 11, 2025

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.

Written by the Congressional Research Service, Library of Congress.

Roll calls

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Amendments

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Other bills by Ruben Gallego

History

  1. Sep 11, 2025Introduced in the Senate by Ruben Gallego.
Show the full action history (2 actions)
  1. Sep 11, 2025Introduced in Senate
  2. Sep 11, 2025Read twice and referred to the Committee on Finance.