estimate_tip_deduction
Estimate your OBBBA No-Tax-on-Tips deduction for 2025-2028. Checks occupation eligibility and MAGI phase-out to return the deduction amount or zero with reason.
Instructions
Estimates the OBBBA No-Tax-on-Tips deduction. REQUIRES occupation_code and routes through the same applyDeduction the app uses, so the estimate is gated on TTOC occupation eligibility, the 2025-2028 sunset window, and MAGI phase-out: an ineligible occupation, out-of-window year, or fully phased-out MAGI returns deduction_usd 0 with a populated reason_if_zero. Inputs/outputs in US dollars; internal math in integer cents. Returns: qualifies, occupation_code_eligible, deduction_usd, capped_qualified_tips_usd, cap_usd, phase_out_fraction, reason_if_zero. INFORMATIONAL ONLY — NOT TAX ADVICE. Verify with IRS (irs.gov/TippedOccupations) and a qualified tax professional. Occupation codes are DESCRIPTIVE PLACEHOLDER SLUGS, not validated 3-digit numeric Treasury codes from IRS final regs (Federal Register 2026-07104). Applies to tax years 2025-2028 only.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| magi_usd | Yes | Modified Adjusted Gross Income in US dollars (e.g. 75000 for $75,000). | |
| tax_year | Yes | Tax year as integer (e.g. 2026). | |
| filing_status | Yes | Filing status: single | head_of_household | married_filing_jointly | married_filing_separately | |
| occupation_code | Yes | TTOC occupation code (descriptive slug, e.g. "bartender_barback"). REQUIRED — estimate is gated on occupation eligibility. | |
| qualified_tips_usd | Yes | Net qualified tip income in US dollars (after tip-out, before cap). E.g. 23000 for $23,000. |