Tax Brief Issue 2: New Tip Deduction, Reporting Thresholds, & EV Charger Credit Updates

01. IRB 2026-18 (Rev. 04-27-2026)

• The deduction for qualified tips under new IRC Section 224 is capped at $25,000 per taxable year, regardless of filing status, and phases out for modified adjusted gross incomes above $150,000 ($300,000 for joint filers).
• To claim the Section 224 deduction for qualified tips, married individuals must file a joint return, and the deduction is not available for any taxable year beginning after December 31, 2028.

Source: IRS Internal Revenue Bulletin · 2026-04-27

02. IRB 2026-19 (Rev. 05-04-2026)

• The information reporting threshold under sections 6041, 6041A, and 3406 increases from $600 to $2,000 for payments made on or after January 1, 2026, with inflation adjustments for calendar years after 2026.
• The deduction for wagering losses under Section 165(d) is limited to 90% of the losses (up to the extent of gains) for taxable years beginning after December 31, 2025.

Source: IRS Internal Revenue Bulletin · 2026-05-04

03. Publication 6027 (Rev. 6-2026)

• The Alternative Fuel Vehicle Refueling Property Credit (§30C) for individuals applies to eligible property placed in service only through June 30, 2026.
• To qualify for the §30C credit, an individual's electric vehicle charger must be installed in an eligible low-income community or non-urban census tract, and for installations prior to January 1, 2025, taxpayers may use either 2015 or 2020 census tract boundaries to determine eligibility.

Source: IRS Tax Forms and Instructions · 2026-05-01