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Limitation based on adjusted gross income

7 rules

(A) In general The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer’s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).

(B) Modified adjusted gross income For purposes of this paragraph, the term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

in view

Whole section

Encodings · 7

qualified_tips_phaseout_reduction26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_reduction
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: shall be reduced (but not below zero) by $100 for each $1,000
versions:
  - effective_from: '2025-01-01'
    formula: '100'

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qualified_tips_phaseout_increment26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_increment
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: >-
            by $100 for each $1,000 by which the taxpayer’s modified adjusted
            gross income exceeds
versions:
  - effective_from: '2025-01-01'
    formula: '1000'

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qualified_tips_phaseout_threshold_other26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold_other
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: exceeds $150,000 ($300,000 in the case of a joint return)
versions:
  - effective_from: '2025-01-01'
    formula: '150000'

open in graph ↗

qualified_tips_phaseout_threshold_joint26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold_joint
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: $300,000 in the case of a joint return
versions:
  - effective_from: '2025-01-01'
    formula: '300000'

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qualified_tips_modified_adjusted_gross_income26 USC § 224 (b)(2) (B) · derived

26 USC 224(b)(2)(B)

name: qualified_tips_modified_adjusted_gross_income
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(B)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: >-
            modified adjusted gross income means the adjusted gross income of
            the taxpayer for the taxable year increased by any amount excluded
            from gross income under section 911, 931, or 933
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/911/a#section_911_amount_excluded_from_gross_income
          output: section_911_amount_excluded_from_gross_income
          hash: >-
            sha256:b128d251a0f74fc46a27e516e864e53c8d25442f5b419c7bb3bb4b607542d725
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us:statutes/26/931#amount_excluded_from_gross_income_under_section_931
          output: amount_excluded_from_gross_income_under_section_931
          hash: >-
            sha256:1fa430ea6a413cdaea822ffd05121d78a82954e52929f5a8e48a80c85249c295
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us:statutes/26/933#income_excluded_from_gross_income_under_section_933
          output: income_excluded_from_gross_income_under_section_933
          hash: >-
            sha256:e9b939801362efae757d1886823555c38a5f4ea828538308fe531f3619adc72f
versions:
  - effective_from: '2025-01-01'
    formula: |-
      max(
          0,
          adjusted_gross_income
          + section_911_amount_excluded_from_gross_income
          + amount_excluded_from_gross_income_under_section_931
          + income_excluded_from_gross_income_under_section_933
      )

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qualified_tips_phaseout_threshold26 USC § 224 (b)(2) (A) · derived

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: exceeds $150,000 ($300,000 in the case of a joint return)
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold_other
          output: qualified_tips_phaseout_threshold_other
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold_joint
          output: qualified_tips_phaseout_threshold_joint
          hash: sha256:local
versions:
  - effective_from: '2025-01-01'
    formula: |-
      if (filing_status == 1):
          qualified_tips_phaseout_threshold_joint
      else:
          qualified_tips_phaseout_threshold_other

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qualified_tips_phaseout_amount26 USC § 224 (b)(2) (A) · derived

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_amount
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: >-
            shall be reduced (but not below zero) by $100 for each $1,000 by
            which the taxpayer’s modified adjusted gross income exceeds
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_reduction
          output: qualified_tips_phaseout_reduction
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_increment
          output: qualified_tips_phaseout_increment
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_modified_adjusted_gross_income
          output: qualified_tips_modified_adjusted_gross_income
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold
          output: qualified_tips_phaseout_threshold
          hash: sha256:local
versions:
  - effective_from: '2025-01-01'
    formula: |-
      floor(
          max(
              0,
              qualified_tips_modified_adjusted_gross_income
              - qualified_tips_phaseout_threshold
          )
          / qualified_tips_phaseout_increment
      )
      * qualified_tips_phaseout_reduction

open in graph ↗

▸rulespec code

Shown source

statutes/26/224.yaml

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This encoding covers the parent provision us/statute/26/224; no dedicated encoding exists for this exact provision yet.

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Rules

qualified_tips_deduction_cap

Parameter

source: 26 USC 224(b)(1)

- name: qualified_tips_deduction_cap
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: >-
              The amount allowed as a deduction under this section for any taxable year shall not
              exceed $25,000.
  versions:
    - effective_from: '2025-01-01'
      formula: '25000'

qualified_tips_phaseout_reduction

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_reduction
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: shall be reduced (but not below zero) by $100 for each $1,000
  versions:
    - effective_from: '2025-01-01'
      formula: '100'

qualified_tips_phaseout_increment

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_increment
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: by $100 for each $1,000 by which the taxpayer’s modified adjusted gross income exceeds
  versions:
    - effective_from: '2025-01-01'
      formula: '1000'

qualified_tips_phaseout_threshold_other

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold_other
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: exceeds $150,000 ($300,000 in the case of a joint return)
  versions:
    - effective_from: '2025-01-01'
      formula: '150000'

qualified_tips_phaseout_threshold_joint

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold_joint
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: $300,000 in the case of a joint return
  versions:
    - effective_from: '2025-01-01'
      formula: '300000'

qualified_tips_modified_adjusted_gross_income

Derived(B) in text ↖

source: 26 USC 224(b)(2)(B)

- name: qualified_tips_modified_adjusted_gross_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              modified adjusted gross income means the adjusted gross income of the taxpayer for the
              taxable year increased by any amount excluded from gross income under section 911,
              931, or 933
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/911/a#section_911_amount_excluded_from_gross_income
            output: section_911_amount_excluded_from_gross_income
            hash: sha256:b128d251a0f74fc46a27e516e864e53c8d25442f5b419c7bb3bb4b607542d725
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/931#amount_excluded_from_gross_income_under_section_931
            output: amount_excluded_from_gross_income_under_section_931
            hash: sha256:1fa430ea6a413cdaea822ffd05121d78a82954e52929f5a8e48a80c85249c295
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/933#income_excluded_from_gross_income_under_section_933
            output: income_excluded_from_gross_income_under_section_933
            hash: sha256:e9b939801362efae757d1886823555c38a5f4ea828538308fe531f3619adc72f
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        max(
            0,
            adjusted_gross_income
            + section_911_amount_excluded_from_gross_income
            + amount_excluded_from_gross_income_under_section_931
            + income_excluded_from_gross_income_under_section_933
        )

qualified_tips_phaseout_threshold

Derived(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: exceeds $150,000 ($300,000 in the case of a joint return)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold_other
            output: qualified_tips_phaseout_threshold_other
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold_joint
            output: qualified_tips_phaseout_threshold_joint
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        if (filing_status == 1):
            qualified_tips_phaseout_threshold_joint
        else:
            qualified_tips_phaseout_threshold_other

nonemployee_trade_or_business_qualified_tips_taken_into_account

Derived

source: 26 USC 224(c)

- name: nonemployee_trade_or_business_qualified_tips_taken_into_account
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(c)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              such qualified tips shall be taken into account under subsection (a) only to the
              extent that the gross income for the taxpayer from such trade or business for such
              taxable year (including such qualified tips) exceeds the sum of the deductions (other
              than the deduction allowed under this section) allocable to the trade or business
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        min(
            max(0, nonemployee_trade_or_business_qualified_tips_included_on_statements_or_form_4137),
            max(
                0,
                gross_income_from_nonemployee_trade_or_business_including_qualified_tips
                - deductions_allocable_to_nonemployee_trade_or_business_other_than_section_224
            )
        )

qualified_tips_taken_into_account_before_cap

Derived

source: 26 USC 224(a), 224(c)

- name: qualified_tips_taken_into_account_before_cap
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(a), 224(c)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              an amount equal to the qualified tips received during the taxable year that are
              included on statements ... or reported by the taxpayer on Form 4137 (or successor)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#nonemployee_trade_or_business_qualified_tips_taken_into_account
            output: nonemployee_trade_or_business_qualified_tips_taken_into_account
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        max(0, employee_qualified_tips_included_on_statements_or_form_4137)
        + nonemployee_trade_or_business_qualified_tips_taken_into_account

qualified_tips_deduction_before_phaseout

Derived

source: 26 USC 224(b)(1)

- name: qualified_tips_deduction_before_phaseout
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              The amount allowed as a deduction under this section for any taxable year shall not
              exceed $25,000.
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_cap
            output: qualified_tips_deduction_cap
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_taken_into_account_before_cap
            output: qualified_tips_taken_into_account_before_cap
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        min(
            qualified_tips_deduction_cap,
            qualified_tips_taken_into_account_before_cap
        )

qualified_tips_phaseout_amount

Derived(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer’s
              modified adjusted gross income exceeds
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_reduction
            output: qualified_tips_phaseout_reduction
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_increment
            output: qualified_tips_phaseout_increment
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_modified_adjusted_gross_income
            output: qualified_tips_modified_adjusted_gross_income
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold
            output: qualified_tips_phaseout_threshold
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        floor(
            max(
                0,
                qualified_tips_modified_adjusted_gross_income
                - qualified_tips_phaseout_threshold
            )
            / qualified_tips_phaseout_increment
        )
        * qualified_tips_phaseout_reduction

qualified_tips_deduction_eligibility

Derived

source: 26 USC 224(e), 224(f), 224(h)

- name: qualified_tips_deduction_eligibility
  kind: derived
  entity: TaxUnit
  dtype: Judgment
  period: Year
  source: 26 USC 224(e), 224(f), 224(h)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              No deduction shall be allowed under this section unless the taxpayer includes on the
              return of tax for the taxable year such individual’s social security number.
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              If the taxpayer is a married individual (within the meaning of section 7703), this
              section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return
              for the taxable year.
        - path: versions[0].formula
          kind: effective_period
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              No deduction shall be allowed under this section for any taxable year beginning after
              December 31, 2028.
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        taxpayer_social_security_number_included_on_return
        and (
            not (filing_status == 1 or filing_status == 2)
            or (filing_status == 1)
        )
        and not taxable_year_begins_after_termination_date

qualified_tips_deduction

Derived

source: 26 USC 224(a), 224(b), 224(e), 224(f), 224(h)

- name: qualified_tips_deduction
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(a), 224(b), 224(e), 224(f), 224(h)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              There shall be allowed as a deduction an amount equal to the qualified tips received
              during the taxable year
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              The amount allowable as a deduction under subsection (a) (after application of
              paragraph (1)) shall be reduced (but not below zero)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_before_phaseout
            output: qualified_tips_deduction_before_phaseout
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_amount
            output: qualified_tips_phaseout_amount
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_eligibility
            output: qualified_tips_deduction_eligibility
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        if qualified_tips_deduction_eligibility:
            max(
                0,
                qualified_tips_deduction_before_phaseout
                - qualified_tips_phaseout_amount
            )
        else:
            0

▸citations (1)

References

This rule cites 1 other rule.

26 USC § 911inferredUS Federal › Statutes › Title 26 › § 911

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us/statute/26/224/b/2 — Limitation based on adjusted gross income · Axiom

Limitation based on adjusted gross income

7 rules

Official source

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in view

Whole section

Encodings · 7

qualified_tips_phaseout_reduction26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_reduction
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: shall be reduced (but not below zero) by $100 for each $1,000
versions:
  - effective_from: '2025-01-01'
    formula: '100'

open in graph ↗

qualified_tips_phaseout_increment26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_increment
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: >-
            by $100 for each $1,000 by which the taxpayer’s modified adjusted
            gross income exceeds
versions:
  - effective_from: '2025-01-01'
    formula: '1000'

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qualified_tips_phaseout_threshold_other26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold_other
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: exceeds $150,000 ($300,000 in the case of a joint return)
versions:
  - effective_from: '2025-01-01'
    formula: '150000'

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qualified_tips_phaseout_threshold_joint26 USC § 224 (b)(2) (A) · parameter

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold_joint
kind: parameter
dtype: Money
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/224
          text: $300,000 in the case of a joint return
versions:
  - effective_from: '2025-01-01'
    formula: '300000'

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qualified_tips_modified_adjusted_gross_income26 USC § 224 (b)(2) (B) · derived

26 USC 224(b)(2)(B)

name: qualified_tips_modified_adjusted_gross_income
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(B)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: >-
            modified adjusted gross income means the adjusted gross income of
            the taxpayer for the taxable year increased by any amount excluded
            from gross income under section 911, 931, or 933
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/911/a#section_911_amount_excluded_from_gross_income
          output: section_911_amount_excluded_from_gross_income
          hash: >-
            sha256:b128d251a0f74fc46a27e516e864e53c8d25442f5b419c7bb3bb4b607542d725
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us:statutes/26/931#amount_excluded_from_gross_income_under_section_931
          output: amount_excluded_from_gross_income_under_section_931
          hash: >-
            sha256:1fa430ea6a413cdaea822ffd05121d78a82954e52929f5a8e48a80c85249c295
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us:statutes/26/933#income_excluded_from_gross_income_under_section_933
          output: income_excluded_from_gross_income_under_section_933
          hash: >-
            sha256:e9b939801362efae757d1886823555c38a5f4ea828538308fe531f3619adc72f
versions:
  - effective_from: '2025-01-01'
    formula: |-
      max(
          0,
          adjusted_gross_income
          + section_911_amount_excluded_from_gross_income
          + amount_excluded_from_gross_income_under_section_931
          + income_excluded_from_gross_income_under_section_933
      )

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qualified_tips_phaseout_threshold26 USC § 224 (b)(2) (A) · derived

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_threshold
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: exceeds $150,000 ($300,000 in the case of a joint return)
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold_other
          output: qualified_tips_phaseout_threshold_other
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold_joint
          output: qualified_tips_phaseout_threshold_joint
          hash: sha256:local
versions:
  - effective_from: '2025-01-01'
    formula: |-
      if (filing_status == 1):
          qualified_tips_phaseout_threshold_joint
      else:
          qualified_tips_phaseout_threshold_other

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qualified_tips_phaseout_amount26 USC § 224 (b)(2) (A) · derived

26 USC 224(b)(2)(A)

name: qualified_tips_phaseout_amount
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 224(b)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us/statute/26/224
          excerpt: qualified tips deduction amount for the taxable year
          text: >-
            shall be reduced (but not below zero) by $100 for each $1,000 by
            which the taxpayer’s modified adjusted gross income exceeds
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_reduction
          output: qualified_tips_phaseout_reduction
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_increment
          output: qualified_tips_phaseout_increment
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_modified_adjusted_gross_income
          output: qualified_tips_modified_adjusted_gross_income
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: us:statutes/26/224#qualified_tips_phaseout_threshold
          output: qualified_tips_phaseout_threshold
          hash: sha256:local
versions:
  - effective_from: '2025-01-01'
    formula: |-
      floor(
          max(
              0,
              qualified_tips_modified_adjusted_gross_income
              - qualified_tips_phaseout_threshold
          )
          / qualified_tips_phaseout_increment
      )
      * qualified_tips_phaseout_reduction

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▸rulespec code

Shown source

statutes/26/224.yaml

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This encoding covers the parent provision us/statute/26/224; no dedicated encoding exists for this exact provision yet.

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Rules

qualified_tips_deduction_cap

Parameter

source: 26 USC 224(b)(1)

- name: qualified_tips_deduction_cap
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: >-
              The amount allowed as a deduction under this section for any taxable year shall not
              exceed $25,000.
  versions:
    - effective_from: '2025-01-01'
      formula: '25000'

qualified_tips_phaseout_reduction

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_reduction
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: shall be reduced (but not below zero) by $100 for each $1,000
  versions:
    - effective_from: '2025-01-01'
      formula: '100'

qualified_tips_phaseout_increment

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_increment
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: by $100 for each $1,000 by which the taxpayer’s modified adjusted gross income exceeds
  versions:
    - effective_from: '2025-01-01'
      formula: '1000'

qualified_tips_phaseout_threshold_other

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold_other
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: exceeds $150,000 ($300,000 in the case of a joint return)
  versions:
    - effective_from: '2025-01-01'
      formula: '150000'

qualified_tips_phaseout_threshold_joint

Parameter(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold_joint
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/224
            text: $300,000 in the case of a joint return
  versions:
    - effective_from: '2025-01-01'
      formula: '300000'

qualified_tips_modified_adjusted_gross_income

Derived(B) in text ↖

source: 26 USC 224(b)(2)(B)

- name: qualified_tips_modified_adjusted_gross_income
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              modified adjusted gross income means the adjusted gross income of the taxpayer for the
              taxable year increased by any amount excluded from gross income under section 911,
              931, or 933
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/911/a#section_911_amount_excluded_from_gross_income
            output: section_911_amount_excluded_from_gross_income
            hash: sha256:b128d251a0f74fc46a27e516e864e53c8d25442f5b419c7bb3bb4b607542d725
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/931#amount_excluded_from_gross_income_under_section_931
            output: amount_excluded_from_gross_income_under_section_931
            hash: sha256:1fa430ea6a413cdaea822ffd05121d78a82954e52929f5a8e48a80c85249c295
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/933#income_excluded_from_gross_income_under_section_933
            output: income_excluded_from_gross_income_under_section_933
            hash: sha256:e9b939801362efae757d1886823555c38a5f4ea828538308fe531f3619adc72f
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        max(
            0,
            adjusted_gross_income
            + section_911_amount_excluded_from_gross_income
            + amount_excluded_from_gross_income_under_section_931
            + income_excluded_from_gross_income_under_section_933
        )

qualified_tips_phaseout_threshold

Derived(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_threshold
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: exceeds $150,000 ($300,000 in the case of a joint return)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold_other
            output: qualified_tips_phaseout_threshold_other
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold_joint
            output: qualified_tips_phaseout_threshold_joint
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        if (filing_status == 1):
            qualified_tips_phaseout_threshold_joint
        else:
            qualified_tips_phaseout_threshold_other

nonemployee_trade_or_business_qualified_tips_taken_into_account

Derived

source: 26 USC 224(c)

- name: nonemployee_trade_or_business_qualified_tips_taken_into_account
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(c)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              such qualified tips shall be taken into account under subsection (a) only to the
              extent that the gross income for the taxpayer from such trade or business for such
              taxable year (including such qualified tips) exceeds the sum of the deductions (other
              than the deduction allowed under this section) allocable to the trade or business
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        min(
            max(0, nonemployee_trade_or_business_qualified_tips_included_on_statements_or_form_4137),
            max(
                0,
                gross_income_from_nonemployee_trade_or_business_including_qualified_tips
                - deductions_allocable_to_nonemployee_trade_or_business_other_than_section_224
            )
        )

qualified_tips_taken_into_account_before_cap

Derived

source: 26 USC 224(a), 224(c)

- name: qualified_tips_taken_into_account_before_cap
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(a), 224(c)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              an amount equal to the qualified tips received during the taxable year that are
              included on statements ... or reported by the taxpayer on Form 4137 (or successor)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#nonemployee_trade_or_business_qualified_tips_taken_into_account
            output: nonemployee_trade_or_business_qualified_tips_taken_into_account
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        max(0, employee_qualified_tips_included_on_statements_or_form_4137)
        + nonemployee_trade_or_business_qualified_tips_taken_into_account

qualified_tips_deduction_before_phaseout

Derived

source: 26 USC 224(b)(1)

- name: qualified_tips_deduction_before_phaseout
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              The amount allowed as a deduction under this section for any taxable year shall not
              exceed $25,000.
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_cap
            output: qualified_tips_deduction_cap
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_taken_into_account_before_cap
            output: qualified_tips_taken_into_account_before_cap
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        min(
            qualified_tips_deduction_cap,
            qualified_tips_taken_into_account_before_cap
        )

qualified_tips_phaseout_amount

Derived(A) in text ↖

source: 26 USC 224(b)(2)(A)

- name: qualified_tips_phaseout_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer’s
              modified adjusted gross income exceeds
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_reduction
            output: qualified_tips_phaseout_reduction
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_increment
            output: qualified_tips_phaseout_increment
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_modified_adjusted_gross_income
            output: qualified_tips_modified_adjusted_gross_income
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_threshold
            output: qualified_tips_phaseout_threshold
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        floor(
            max(
                0,
                qualified_tips_modified_adjusted_gross_income
                - qualified_tips_phaseout_threshold
            )
            / qualified_tips_phaseout_increment
        )
        * qualified_tips_phaseout_reduction

qualified_tips_deduction_eligibility

Derived

source: 26 USC 224(e), 224(f), 224(h)

- name: qualified_tips_deduction_eligibility
  kind: derived
  entity: TaxUnit
  dtype: Judgment
  period: Year
  source: 26 USC 224(e), 224(f), 224(h)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              No deduction shall be allowed under this section unless the taxpayer includes on the
              return of tax for the taxable year such individual’s social security number.
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              If the taxpayer is a married individual (within the meaning of section 7703), this
              section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return
              for the taxable year.
        - path: versions[0].formula
          kind: effective_period
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              No deduction shall be allowed under this section for any taxable year beginning after
              December 31, 2028.
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        taxpayer_social_security_number_included_on_return
        and (
            not (filing_status == 1 or filing_status == 2)
            or (filing_status == 1)
        )
        and not taxable_year_begins_after_termination_date

qualified_tips_deduction

Derived

source: 26 USC 224(a), 224(b), 224(e), 224(f), 224(h)

- name: qualified_tips_deduction
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 224(a), 224(b), 224(e), 224(f), 224(h)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              There shall be allowed as a deduction an amount equal to the qualified tips received
              during the taxable year
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/224
            excerpt: qualified tips deduction amount for the taxable year
            text: >-
              The amount allowable as a deduction under subsection (a) (after application of
              paragraph (1)) shall be reduced (but not below zero)
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_before_phaseout
            output: qualified_tips_deduction_before_phaseout
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_phaseout_amount
            output: qualified_tips_phaseout_amount
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/224#qualified_tips_deduction_eligibility
            output: qualified_tips_deduction_eligibility
            hash: sha256:local
  versions:
    - effective_from: '2025-01-01'
      formula: |-
        if qualified_tips_deduction_eligibility:
            max(
                0,
                qualified_tips_deduction_before_phaseout
                - qualified_tips_phaseout_amount
            )
        else:
            0

▸citations (1)

References

This rule cites 1 other rule.

26 USC § 911inferredUS Federal › Statutes › Title 26 › § 911