How does the “No Tax on Tips” feature work in the Stride app?

Stride helps you track your income and estimate your taxes. If you earn tips as part of your work, you can now track tips separately from your taxable income in the app.

Tracking tips separately allows Stride to account for the federal “No Tax on Tips” deduction when estimating your taxes.

What is the “No Tax on Tips” deduction?

The One Big Beautiful Bill Act (2025–2028) allows workers in certain tip-based occupations to deduct up to $25,000 of tip income each year from their federal income taxes.

A few important things to know:

• The deduction applies only to federal income tax

• It does not reduce Social Security or Medicare (self-employment) taxes

• It phases out for higher incomes

  • $150,000 MAGI (single filers)

  • $300,000 MAGI (joint filers)

• Only voluntary tips qualify (not service charges or automatic gratuities)

You can read the official IRS announcement here:
https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors

Stride uses the income information you enter to reflect this deduction when estimating your taxes.

How do I add tips in the Stride app?

If you have a job where you commonly receive tips—such as delivery or rideshare—you’ll see a Tips field when adding income.

Enter your Taxable income and any Tips you received for that job. Tracking tips separately helps Stride apply the No Tax on Tips deduction when estimating your federal income taxes.

If your job does not typically receive tips, the Tips field will not appear.

Why don’t I see the Tips field?

The Tips field only appears for jobs where workers commonly receive tips.

If your selected job does not typically receive tips, you’ll only see the Taxable income field when entering income.

How does Stride apply the deduction?

If you qualify for the deduction, Stride will automatically account for it when estimating your federal income taxes.

This means:

• Up to $25,000 of tip income may be excluded from your federal income tax estimate

• Self-employment taxes may still apply

• The adjustment will appear automatically in your Estimated Taxes

You don’t need to apply the deduction manually—Stride handles the calculation.

Does this affect my tax reports or exports?

Yes. When you export your tax data from Stride, your report will now include the tips you entered in the app.