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Decoder · Tax years 2025–2028

TTOC decoder

Worker mode: enter your occupation, wages, filing status, and MAGI — get an eligibility verdict, deduction amount after phase-out, and a state-conformity check. Employer mode: paste the Box 14b code you issued and validate it against the occupation per the IRS final reg.[1]

Policy state — Last verified2026-05-07Source

Personalized calculation

TTOC tip-deduction decoder

Tell us about your work
Worker-first plain English. No login. No logging. Math runs in your browser; nothing about your wages or MAGI leaves this page.
Awaiting input — fill in your details, then calculate.

Pick an occupation, set your tax year and filing status, and enter your wages and MAGI to see the deduction math. The output here will update once you press Calculate.

Policy state — Last verified2026-05-07Source
Policy state — Last verified2026-05-07OT cap source
Policy state — Last verified2026-05-07Phase-out source

Try a sample scenario

Pick a scenario to see the shape of the output. None are real returns — illustrative numbers for kicking the tires. Your inputs are never sent to analytics.[1]

Bartender · $48K base + $22K tips · MAGI $89K · MFJ

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Manicurist · $32K base + $18K tips · MAGI $51K · Single

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Casino dealer · $46K base + $19K tips + $4.2K OT · MAGI $103K · MFJ

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Massage therapist · $41K base + $14K tips · MAGI $56K · HoH

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Statute-cited expansion

Where each verdict comes from

Every output band traces to primary statute or final-reg text. Caps and phase-out math live in §224 / §225; the occupation list lives in TD 10044; W-2 reporting comes from the 2026 W-2/W-3 instructions.

  • 26 USC §224(b)(1) · §225(b)(1)$25,000 tips cap and $12,500 / $25,000 overtime caps drive the post-cap rows on every output.
  • 26 USC §224(b)(2) · §225(b)(2)$100 reduction per $1,000 of MAGI over $150,000 (single) / $300,000 (MFJ). Combined-deduction phase-out reflected in show-the-math.
  • TD 10044 · 91 FR 19026 · 26 CFR §1.224-1Final regulation listing the 71 TTOC occupations across 8 categories. Effective June 12, 2026; retroactive to TY2025.
  • IRS Notice 2025-69 §6SSTB transition relief: every occupation that customarily and regularly received tips on or before 2024-12-31 is treated as not-an-SSTB until Treasury finalizes §1.224-1(g) (currently RESERVED).

Actionable artifact

What to do with the output

  • TY2026 (current year) — claim on Schedule 1-A.

    Transcribe the federal AGI reduction onto the qualified-tips / qualified-overtime line of Schedule 1-A (Form 1040). Keep W-2 Box 14b and Box 12 codes TP/TT for your records.

  • TY2025 (already filed) — see the amend walkthrough.

    3-year amend window stays open through 2029-04-15. Walk through Form 1040-X line-by-line at /amend-prior-year.

  • Box 14b looks wrong? Use the validator.

    The dedicated employer-vocabulary surface at /box-14b-validator generates a copyable W-2c request letter.