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[Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill (OBBBA)
Possibly. A piano tuner would be considered someone who customarily or regularly receives tips. If you are going to people's homes to repair/tune their piano you would likely be considered home services.
In order to deduct the tips the following must apply:
- The tips must be reported to the IRS, either on a W-2 or 1099. Claiming the deduction on unreported tips would be considered double dipping and you cannot do that.
- Your filing status must NOT be married filing separately
- If your MAGI is over $150,000 if single or $300,000 if married filing jointly, then your tip deduction is phased out
- You still will pay Medicare and Social Security Taxes on the tips and likely state taxes, so it is not just a leave it off your return deal.
- Up to $25,000 in tips may be deducted from your income.
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a week ago