According to experts, the average person who works for tips could save up to $1,300 on their taxes.
“But in practice, $25,000 in tips is a lot of tips to be receiving, and so very few people are going to find themselves in that situation,” said Ross Milton, an associate professor at the La Follette School of Public Affairs at the University of Wisconsin–Madison. “Some people who even who receive tips, might not really be saving anything because they may not really have too many people who receive tips, actually don’t have enough income to pay a significant amount of income taxes.”