The Working for Tips Tax Relief Act of 2025

This bill creates a tax deduction for certain reported cash tips received by workers in occupations that traditionally rely on tips, such as servers and bartenders. It allows a deduction of up to $35,000 per year for tips reported to employers (e.g., via Form 4137), but phases out for individuals earning over $50,000 annually (single) or $100,000 (joint). The deduction requires a Social Security number and applies only to taxable years starting in 2026 through 2028, with a Treasury pilot program to evaluate extending it permanently. It excludes tips from occupations not traditionally tip-based and mandates annual reviews of living wage thresholds.