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NoTaxOTCalculator
Disclaimer — not tax advice.This free calculator is an educational estimate of a federal income-tax deduction only (Schedule 1-A Part II). Social Security and Medicare (FICA) taxes on tips still apply — this is not a payroll-tax escape. It is not affiliated with the IRS, TurboTax, or any tax software. Rules can change; confirm with IRS Schedule 1-A instructions or a qualified tax professional before filing.

Schedule 1-A · Part II

No Tax on Tips Calculator

Estimate your 2025–2028 IRS Schedule 1-A Part II federal income-tax deductionfor qualified tips — up to $25,000 per return, subject to MAGI phaseout.

Income-tax deduction only.This is an income-tax deduction estimate. Social Security and Medicare (FICA) taxes on tips still apply.

Estimate your tips deduction

Tips cap is $25,000 per return (same for single and MFJ). MFS is generally ineligible.
Same MVP caps and thresholds for 2025–2028. Deduction expires after 2028 (sunset).
Tips that qualify under Schedule 1-A Part II for your tipped occupation.
Modified adjusted gross income estimate for phaseout (Schedule 1-A Part I).
Occupation must be a tipped occupation. See theIRS Schedule 1-A guidanceand tipped occupations list. This calculator does not verify your occupation.

Eligibility notes (Schedule 1-A, Part II)

  • Cap: $25,000 per return (same for single and married filing jointly).
  • MAGI phaseout begins at $150,000 (single etc.) or $300,000 (MFJ). Reduction = floor(excess MAGI ÷ 1,000) × $100.
  • Married taxpayers generally must file jointly to claim this deduction.
  • A valid Social Security number (SSN) is required.
  • You must work in a tipped occupation (see IRS tipped occupations guidance).
  • This is a federal income-tax deduction; FICA (Social Security / Medicare) on tips still applies.
  • Available tax years 2025–2028 (sunsets after 2028).

Using the No Tax on Tips calculator

This no tax on tips calculator estimates Schedule 1-A Part II for tipped workers. Enter qualified tips and a MAGI estimate to see the capped, phaseout-adjusted federal income-tax deduction. It does not verify occupation, does not file a return, and does not reduce FICA.

Caps are $25,000 per return. Phaseout uses the same floor(excess ÷ 1,000) × $100 formula as overtime. Married Filing Separately is treated as ineligible in this MVP. For overtime premium math, use theNo Tax on Overtime Calculator.

FAQ — no tax on tips calculator

Common questions about Schedule 1-A Part II tips deduction estimates.

What is the No Tax on Tips deduction?
Schedule 1-A Part II lets eligible workers deduct qualified tips as a federal income-tax deduction, subject to a $25,000 annual cap and a MAGI phaseout. Social Security and Medicare taxes on tips still apply. This calculator estimates that deduction for educational purposes only.
Is the tips cap different for single vs. married?
No — the tips deduction cap is $25,000 per return for both single and married filing jointly. MAGI phaseout thresholds still differ ($150,000 vs. $300,000).
How does the MAGI phaseout work for tips?
Same method as overtime: if MAGI exceeds the threshold, reduce the deduction by $100 for each full $1,000 over the threshold (floor division). Deduction floors at $0.
Do I need a tipped occupation?
Yes. IRS guidance limits the deduction to tipped occupations. Check the IRS tipped occupations list and Schedule 1-A instructions. This tool does not validate your job title.
Do Social Security and Medicare still apply to tips?
Yes. This deduction is for federal income tax only. FICA (Social Security and Medicare) taxes on tips still apply.
Can married filing separately claim the tips deduction?
Generally no — married taxpayers must file jointly. This calculator treats MFS as ineligible.
Is this tax advice or TurboTax?
No. Independent educational estimate only from NoTaxOTCalculator — not affiliated with the IRS or TurboTax, and not a substitute for professional tax advice or official forms.

Sources

  1. IRS Form Schedule 1-A (PDF) — Part II (tips) and Part III (overtime)
  2. Schedule 1-A: what to know about the new form
  3. What the No Tax on Tips deduction means for you
  4. What to know about the No Tax on Overtime deduction

Also see our No Tax on Overtime calculator (Schedule 1-A, Part III).