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$25,000 limit per return
​​​​​​​          •Married Filing Separate will not qualify
•IRS designated occupation that “customarily and regularly” receives tips
•There is a list with 68 Designated Occupations
•Voluntary Tips – Not allocated tips or a mandatory tip (18% gratuity on parties)
•Tips must be reported as income on W-2, 1099, Schedule C
•Still pay Social Security, Medicare and State Taxes. Only Federal Taxes are waived.

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