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You Make the Call - Jan. 15, 2026

Published:
By: NATP Staff
Tax rules explaining why married filing separately taxpayers cannot claim the No Tax on Tips deduction under the One Big Beautiful Bill Act

Question: Tanya is a married restaurant server who lived apart from her spouse for most of 2025. She does not plan to file a joint return with her spouse.

For 2025, Tanya’s Form W-2, Wage and Tax Statement, shows:

  • Box 1 wages: $48,000
  • Box 7 Social Security tips: $12,500

Tanya’s modified adjusted gross income (MAGI) is below $150,000, and she meets all other requirements for the qualified tips deduction. If Tanya files married filing separately for 2025, can she claim the “No Tax on Tips” deduction that originated with the One Big Beautiful Bill Act (OBBBA)? 

Answer: No. Tanya cannot claim the “No Tax on Tips” deduction if she files married filing separately.

While the OBBBA added §224 to provide a new income tax deduction for qualified tips, the statute includes a filing-status restriction: if the taxpayer is married (within the meaning of §7703), the deduction applies only if the taxpayer and spouse file a joint return. In other words, the qualified tips deduction is not available to married taxpayers who file separately, even if they otherwise meet the tip, income and recordkeeping requirements.

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NATP Staff

The NATP team is dedicated to supporting tax professionals with expert insights, industry updates and resources that help them serve their clients with confidence.

Information included in this article is accurate as of the publication date. This post does not reflect tax law changes or IRS guidance that may have occurred after the publishing date.