Poker Dealer Tip Deduction Calculator
For dealers pooling tokes across downs.
The short answer: At the numbers below, the deduction is $25,000 — $3,000 back at 12% ($115 per paycheck).
Modified Adjusted Gross Income
Tips Deduction
$25,000
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
The Toke Pool
Poker dealers share the toke pool by down or hour; $25k–$40k a year in tokes is common at busy rooms — the cap and phase-out matter.
- • Pooled tokes reported on W-2 → deductible up to $25,000
- • Tournament toke shares → same
- • High-toke years: phase-out trims the deduction as MAGI rises
Worked Example
A single dealer reporting $26,000 of tokes.
- • Cap-limited deduction $25,000; savings $3,000 at 12%
Keep Reading
Frequently Asked Questions
Do poker dealers qualify for the OBBBA tips deduction?
Yes — W-2 poker dealers qualify on reported tokes, capped at $25,000 of tips.
Why is my deduction less than my toke total?
The tip cap is $25,000 and the MAGI phase-out can trim further — the calculator shows the final number.