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IRS & compliance · Sep 19, 2026

Tip Deduction up to $25,000 (2025–2028): How Restaurant, Nail, and Massage Workers Can Plan Compliance

OBBBA (P.L. 119-21) added §224: deduct up to $25,000 of qualified tips for 2025–2028, with MAGI phase-out. NCDOR states the deduction does not reduce NC taxable income. Cary/RTP tipped workers should plan records and Schedule 1-A carefully.

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