S2780119th CongressWALLET

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

Score Hidden

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.

Free to start

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.gov

Live Policy Activity

Live

Surfaced from PRIA's policy knowledge graph — ranked by signal strength, connected by evidence.

Live · 5h ago15,853Bills1,439Wiki4 signals surfaced
Now TrackingHR8495
Moving· 4 days in stage

Financial Services and General Government Appropriations Act, 2027

Rep. Joyce, David P. [R-OH-14] (R-OH)
IntroducedApr 24
Cmte Reported
Passed Origin Chbr
Passed Second Chbr
Resolving Diffs
Enrolled
Became Law
Current StageIntroduced· 4d

Appropriations package that would fund Treasury and IRS while imposing rulemaking limits and detailed DC policy constraints, affecting taxpayers, community lenders, and DC residents.

Back to Legislation

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