H.R. 6295 — The Working for Tips Tax Relief Act of 2025

This section establishes an above-the-line deduction (i.e., available to non-itemizers) for qualified tips (i.e., voluntarily paid cash tips, including charged tips and shared tips, received in occupations that customarily received tips as of December 31, 2024, excluding specified service trades or businesses) of up to $35,000 per taxable year if reported on specified forms or statements. The deduction phases out for modified adjusted gross income between $50,000 and $75,000 ($100,000 to $150,000 for joint returns)—reduced by $50 for each $500 above the lower threshold—and is unavailable above those amounts; requires a social security number on the return and a joint return for married taxpayers; includes special rules for self-employed individuals and married filers; directs the Secretary of the Treasury to index thresholds annually based on living wage estimates, issue regulations to prevent abuse, and submit biennial reports to Congress on utilization and effects beginning July 1, 2027; and applies to taxable years beginning after December 31, 2025, and before January 1, 2029. This section also (1) treats omission of the required social security number as a mathematical or clerical error, (2) excludes the deduction amount from qualified business income under section 199A, and (3) makes conforming amendments to the Internal Revenue Code.