Federal income tax planning
No Tax on Tips Deduction Calculator
Estimate how much of your reported qualified tips could be deducted after the $25,000 cap, MAGI phaseout, and self-employment net income limit.
Estimated deduction$18,500$4,070 estimated federal tax savings
Deduction estimate
Allowed tip deduction$18,500
Cap-limited amount$18,500
MAGI phaseout$0
Estimated tax savings$4,070
Phaseout starts$150,000
What changed the result
$18,500 of qualified tips is considered before the $25,000 annual cap.
MAGI is below the phaseout threshold for this filing status.
A 22% marginal-rate estimate turns the deduction into $4,070 of federal income tax savings before other return details.
Planning notes
- The deduction is capped at $25,000 per year.
- For self-employed work, the deductible tip amount cannot exceed net income from the tipped trade or business.
- At the current input, the deduction reaches zero around $335,000 of MAGI.