26 USC 224 - Qualified tips

U.S Code last checked for updates: Aug 16, 2025

§ 224.

Qualified tips

(a)

In general

(b)

Limitation

(1)

In general

(2)

Limitation based on adjusted gross income

(A)

In general

(B)

Modified adjusted gross income

(c)

Tips received in course of trade or business

(d)

Qualified tips

For purposes of this section—

(1)

In general

(2)

Exclusions

Such term shall not include any amount received by an individual unless—

(A)

such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor,

(B)

the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)), and

(C)

such other requirements as may be established by the Secretary in regulations or other guidance are satisfied.

For purposes of subparagraph (B), in the case of an individual receiving tips in the trade or business of performing services as an employee, such individual shall be treated as receiving tips in the course of a trade or business which is a specified service trade or business if the trade or business of the employer is a specified service trade or business.

(3)

Cash tips

(e)

Social security number required

(1)

In general

(2)

Social security number defined

(f)

Married individuals

(g)

Regulations

(h)

Termination

(Added Pub. L. 119–21, title VII, § 70201(a), July 4, 2025, 139 Stat. 170.)

cite as: 26 USC 224