No Tax on Large Party Tips Act

This bill would change the rules around a tax break for tips so that tips automatically added to a customer's bill and tips suggested by a business (like on a screen prompt) would count as "voluntary" tips. Right now, workers in jobs where tipping is common can deduct up to $25,000 per year in tip income from their taxes for the years 2025 through 2028, but only if those tips were voluntarily chosen by the customer. This bill would expand that tax break to cover these additional types of tips by treating them as if they were voluntarily paid.

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