AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

Plain English Breakdown

Checked against official source text during the last sync.

Act Creating Income Tax Deduction for Tips

This act allows people who get tips as part of their job to deduct up to $25,000 from their income tax.

What This Bill Does

• Creates a new rule that lets workers who earn tips take money off their taxes.
• Limits the deduction to $25,000 for each person's tip earnings.
• Applies only to jobs listed by the IRS as usually getting tips.

Who It Names or Affects

• People who work in occupations that typically receive tips from customers.

Terms To Know

Income Tax

Money people pay to the government based on how much they earn.

Deduction

An amount taken off your taxes that lowers what you owe.

Limits and Unknowns

• The bill does not specify which occupations are eligible for this deduction.
• It is unclear how the Internal Revenue Service will list these occupations.

Official Summary Text

To establish a personal income tax deduction of up to twenty-five thousand dollars for the amount of tips or gratuities declared by a taxpayer employed in certain occupations.

Current Bill Text

LCO No. 298 1 of 1

General Assembly Proposed Bill No. 47
February Session, 2026 LCO No. 298

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. BERTHEL, 32nd Dist.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR TIPS OR GRATUITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to establish a personal 1
income tax deduction of up to twenty -five thousand dollars for the 2
amount of tips or gratuities declared by a taxpayer employed in an 3
occupation listed by the Internal Revenue Service as customarily and 4
ordinarily receiving tips. 5
Statement of Purpose:
To establish a personal income tax deduction of up to twenty -five
thousand dollars for the amount of tips or gratuities declared by a
taxpayer employed in certain occupations.