Investopedia / Photo Composite by Elizabeth Guevara / Getty Images To take advantage of the 'No Tax on Tips' tax deduction, check your W-2 to see how much you made in tips in 2025. Key Takeaways You can subtract up to $25,000 of the tips you earned from your 2025 taxable income, which lowers your tax burden. However, you'll have to calculate the deduction yourself. Workers who received gratuities in 2025 should begin collecting the records now to ensure they can take full advantage of a new tax brea ...