No Tax on Large Party Tips Act
Sponsored By: Senator Rep. Gallego, Ruben [D-AZ-3]
Introduced
Summary
This bill would treat tips automatically added to a customer's bill and tips suggested by a business as paid voluntarily for the qualified-tips tax deduction under section 224(d)(2)(A) of the Internal Revenue Code. It clarifies that automatic service charges and business‑prompted suggested tips count as voluntary payments when applying that specific deduction. The change focuses on tax treatment and would affect businesses that add or prompt tips, customers who pay them, and taxpayers claiming the qualified-tips deduction.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Tax rules for automatic and suggested tips
This bill would treat tips automatically added at payment and business-prompted suggested tips as paid voluntarily. If enacted, tipped workers and businesses would face different tax-reporting treatment under section 224(d)(2)(A). The text gives no effective date, dollar amounts, or implementation details.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Rep. Gallego, Ruben [D-AZ-3]
AZ • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govLive Policy Activity
LiveSurfaced from PRIA's policy knowledge graph — ranked by signal strength, connected by evidence.
Financial Services and General Government Appropriations Act, 2027
Appropriations package that would fund Treasury and IRS while imposing rulemaking limits and detailed DC policy constraints, affecting taxpayers, community lenders, and DC residents.
Other Activity On This Topic
· ranked by signal strengthTo require the Secretary of Housing and Urban Development to conduct an improper payment assessment for project-based and tenant-based assistance, and for other purposes.
A bill to amend the Workforce Innovation and Opportunity Act to establish a grant program for a workforce data quality initiative, and for other purposes.
Deep Dive
· Polipedia policy encyclopediaYouth Conservation Corps & Public Lands Corps
The federal government runs two closely related conservation-workforce pipelines on public lands: the Youth Conservation Corps YCC and the Public Lands Corps PLC. YCC is a summer employment program fo
WTO Membership & Uruguay Round Agreements Act
The Uruguay Round Agreements Act URAA of 1994 19 U.S.C. §§ 3501–3624 implemented U.S. membership in the World Trade Organization WTO and incorporated the Uruguay Round trade agreements — the broadest
World Trade Center Health Program (James Zadroga Act)
The World Trade Center Health Program is a federally funded health benefits program that provides free medical monitoring and treatment to those who were exposed to the toxic dust, debris, and fumes f
Workers' Compensation
Workers' compensation is the United States' primary workplace injury system — a no-fault insurance program where employees who are injured on the job receive medical coverage and partial wage replacem
Take It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in