The Working for Tips Tax Relief Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6295 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6295 To amend the Internal Revenue Code of 1986 to permanently exclude from gross income certain reported tips for workers in eligible service sectors, to better support low- and moderate-income earners, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES November 25, 2025 Mr. Davis of North Carolina introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to permanently exclude from gross income certain reported tips for workers in eligible service sectors, to better support low- and moderate-income earners, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as ``The Working for Tips Tax Relief Act of 2025''. SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN REPORTED TIPS. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139J the following new section: ``SEC. 139K. EXCLUSION OF CERTAIN REPORTED TIPS. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18) of Public Law 119- 21, or reported by the taxpayer on Form 4137 (or successor). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $35,000. ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under s