# 119-s-2780: No Tax on Large Party Tips Act

119-s-2780, No Tax on Large Party Tips Act, is a 119th Congress bill sponsored by Sen. Gallego, Ruben [D-AZ] (D-AZ); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-2780
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2780
- Congress: 119
- Title: No Tax on Large Party Tips Act
- Status: introduced
- Introduced: 2025-09-11
- Sponsor: Sen. Gallego, Ruben [D-AZ] (D-AZ)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## 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.

## Provisions PRIA read

- Tax rules for automatic and suggested tips: mixed, low. 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…

## Related bills

- 119-s-2838: Protecting Our Democracy Act
- 119-s-5283: Momnibus Act
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-2763: Keep Billionaires Out of Social Security Act
- 119-s-3869: Healthy Families Act

## Sources
- [119-s-2780 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2780)

## Related
- [119-s-2838: Protecting Our Democracy Act](https://policyrisk.com/legislation/119-s-2838)
- [119-s-5283: Momnibus Act](https://policyrisk.com/legislation/119-s-5283)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-2763: Keep Billionaires Out of Social Security Act](https://policyrisk.com/legislation/119-s-2763)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2780 (as of 2026-04-21).