No Tax on TipsU.S. Schedule 1-A estimator

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Disclaimer

This website is an unofficial estimator for a U.S. federal income-tax deduction. It is not tax advice, legal advice, or a filing service.

No professional relationship

Using the calculator does not create a client relationship with the site operator. The operator is not your CPA, enrolled agent, attorney, or tax preparer.

IRS rules can be more specific than this tool

The estimator copies published dollar amounts: a $25,000 cap and a MAGI phase-out that reduces the deduction by $100 for each full $1,000 of MAGI over $150,000 ($300,000 if married filing jointly), following the Schedule 1-A instruction to decrease any fraction to the next lower whole number. Your Form 1040, W-2, 1099, 4137, and Schedule 1-A worksheets control.

The tool does not compute MAGI, allocate tips among employers, apply the self-employed net-income limit, test Social Security number validity, or decide married-filing-separately outcomes.

Occupation list

TTOC titles and codes were copied from the IRS pageOccupations that customarily and regularly received tips on or before Dec. 31, 2024(page last reviewed June 28, 2026; copied into this repo on September 17, 2026). If the IRS updates that list, this site may lag.

FICA and payroll taxes

This site does not claim that FICA, Social Security tax, or Medicare tax on tips is waived, reduced, or refunded. An income-tax deduction is not the same as a payroll-tax exemption.

United States only

The deduction described here is a U.S. federal concept. State tax treatment can differ. Non-U.S. tax systems are out of scope.

Affiliate links

Buttons labeled “File with TurboTax” and “File with TaxAct” currently point to each company’s public homepage. They do not include affiliate tracking IDs. If tracking IDs are added later, the footer will keep an affiliate disclosure. This site is not affiliated with Intuit, TaxAct, or the Internal Revenue Service.

No warranty

The site is provided “as is,” without warranties of accuracy, completeness, or fitness for a particular purpose. Tax law and IRS forms change. You are responsible for your return.