OBBBA Savings by Income Level
Five illustrative examples for a single, tipped W-2 worker — from $30,000 up through $160,000, where the MAGI phase-out starts cutting in.
Quick answer
Your OBBBA deduction grows with your tip income up to the $25,000 cap — until your MAGI passes $150,000 (single), at which point it starts shrinking by 6 cents for every dollar above that threshold.
| Income | Tips | Net deduction | Federal tax saved |
|---|---|---|---|
| $30,000 total income | $8,000 | $8,000 | $960 |
| $50,000 total income | $15,000 | $15,000 | $1,800 |
| $75,000 total income | $20,000 | $20,000 | $4,400 |
| $100,000 total income | $25,000 | $25,000 | $5,500 |
| $160,000 total income | $25,000 | $24,400phase-out applied | $5,856 |
At $160,000 total income (in this example, $135,000 wages + $25,000 tips), MAGI of $160,000 exceeds the $150,000 single-filer threshold by $10,000 — reducing the deduction by $600 (6% of the excess). Below $150,000 MAGI, single filers see no phase-out at all.
These are illustrative wage/tip splits for a single filer, not universal ratios — your actual deduction depends on your specific tip and overtime income, not just your total earnings. Use the calculator for your exact numbers.