9
10

No Tax on Large Party Tips Act

9/29/2025, 6:54 PM

Summary of Bill S 2780

This bill, introduced in the 119th Congress, is titled "A bill to clarify the treatment of certain tips for purposes of the tax deduction for qualified tips."

Congressional Summary of S 2780

No Tax on Large Party Tips Act

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.

Current Status of Bill S 2780

Bill S 2780 is currently in the status of Bill Introduced since September 11, 2025. Bill S 2780 was introduced during Congress 119 and was introduced to the Senate on September 11, 2025.  Bill S 2780's most recent activity was Read twice and referred to the Committee on Finance. as of September 11, 2025

Bipartisan Support of Bill S 2780

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 2780

Primary Policy Focus

Taxation

Alternate Title(s) of Bill S 2780

A bill to clarify the treatment of certain tips for purposes of the tax deduction for qualified tips.
A bill to clarify the treatment of certain tips for purposes of the tax deduction for qualified tips.

Comments

Kian Newman profile image

Kian Newman

913

9 months ago

I think this bill is good for us. It will help with tips and taxes. I hope it passes. It could help me save money.