See what your tips may save you under the No Tax on Tips deduction.

Both — and that’s the reason for this page. "Qualified Tips" (capitalized) is the name of our app, also marketed as TipTax. "Qualified tips" (lowercase) is the IRS statutory term defined in §224 of the OBBBA — the voluntary cash tips that may qualify for the federal deduction in 2025–2028. This app helps tipped workers track and substantiate those qualified tips for their own records. It is not the IRS definition itself, and it is not tax advice.

No — it’s a deduction, not an exemption. You may deduct up to $25,000 of qualified tips from your federal income tax, for tax years 2025–2028. It’s federal income tax only — FICA (Social Security + Medicare) still applies in full.

The deduction is retroactive to January 1, 2025, but employers don’t start reporting qualified tips on Form W-2 (Box 12, code TP) until amounts earned in 2026. For tax year 2025, your own daily record is the substantiation. That makes 2025 the year a clean, contemporaneous log matters most — and exactly what Qualified Tips is built for.

The IRS Final Regulations (TD 10044, April 2026) list 70+ Treasury Tipped Occupation Codes (TTOC) — servers, bartenders, baristas, drivers, hairdressers, golf caddies, taxi drivers, and more. If your job isn’t on the list, you’re not eligible under §224. Qualified Tips ships with the full TTOC list so you pick the right code at onboarding.

9 U.S. states have no wage income tax, so the federal deduction has no state impact for residents there (AK, FL, NH, NV, SD, TN, TX, WA, WY). For the other 41 jurisdictions, conformity depends on state legislation — many still tax tip income at the state level. Qualified Tips shows your state’s status inline and reminds you to verify with your state revenue department. Keep federal records clean either way.

No to both. Per the §224 Final Regulations, qualified tips must be cash tips paid voluntarily (credit/debit included). Mandatory auto-gratuities, service charges, and amounts paid in digital assets (cryptocurrency) are explicitly excluded. Qualified Tips has separate fields for each so they appear in your record but never roll into the qualified total.

You may be eligible if your occupation is on the IRS TTOC list — rideshare drivers, delivery drivers, freelance bartenders, mobile estheticians, and more. The $25,000 cap and MAGI phase-outs still apply, and for SE filers the deduction is additionally capped at your net self-employment income.

That’s a question for a licensed tax professional — not the app. Qualified Tips records what you tell it; it does not advise on prior under-reporting or how to amend past returns. If this applies to you, please talk to a CPA or Enrolled Agent before filing.

The IRS does not certify any app, but it has recognized contemporaneous, structured daily tip records for decades — that format is described in IRS Publication 1244 (Form 4070A). Qualified Tips is the digital equivalent. Each entry is timestamped at the moment you log it, and the PDF you export shows that timestamp — so an auditor can see entries were recorded at or near the shift, not reconstructed at filing time.

No. Qualified Tips is a record-keeping and estimation tool, not a substitute for a qualified tax professional. Always talk to a CPA, Enrolled Agent, or licensed tax software about your specific situation before filing.