Wedding Vendor Tip Tax Deduction Calculator
Run your real tip numbers below. The estimate applies the same Schedule 1-A math as your federal return — no tax software, no signup.
The short answer: Nia — at the scenario numbers pre-loaded below, the OBBBA deduction is $5,500, worth about $660 in federal income tax at a 12% marginal rate ($25 per biweekly paycheck). Exact figures update live as you change the inputs.
Modified Adjusted Gross Income
Tips Deduction
$5,500
✅ 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.
What Counts (and What Doesn't)
Weddings generate two kinds of money: the couple's vendor gratuity line on the contract (service charge → wages) and envelopes handed to staff on the day (tips, if you keep them). The DJ or photographer who owns their business cannot deduct gratuities at all — self-employed again. Day-of staff on the caterer's W-2 deduct the envelopes they actually keep.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Nia staffs wedding weekends for a catering company and nets about $5,500 a year in day-of gratuities.
- • Deductible amount: $5,500
- • Federal income tax savings: $660 (at the 12% marginal rate)
- • Per biweekly paycheck: $25
Reported tips only — the deduction rewards honest reporting, and the math above already applies the cap and phase-out for you.
Keep Reading
Frequently Asked Questions
Is the couple's 'vendor gratuity' contract line a tip?
Usually no — contractual gratuity lines are service charges distributed as wages. Cash envelopes handed directly to staff on the day are qualified tips for the W-2 staff who keep them.
Do I still pay Social Security and Medicare on tips?
Yes. FICA (7.65%) applies to all tip income; the OBBBA deduction only removes tips from federal income tax. Savings come from your marginal income-tax bracket.