No tax on tips could reduce low-income tipped workers' after-tax income

Hypothetical After-Tax Income of Single Filer with One Child in 2023

Table with 3 columns and 8 rows.
Wages$7,925$7,925
Tips$15,850$15,850
Tips Exclusion−$15,850$0
Earned Income$7,925$23,774
Tax Liability$0−$992
Refundable CTC$814$1,800
EITC$1,844$3,641
After-Tax Income$26,433$28,223
Source: Bureau of Labor Statistics, Internal Revenue Service, and Tax Policy Center
Note: Income based on the 25th income percentile nationally of waiters and waitresses in 2023.