Beginning with 2025 tax filings, eligible workers will be able to deduct up to $25,000 in tips from their taxable income under the No Tax on Tips provision of the One Big, Beautiful Bill Act (OBBBA).
To help taxpayers sort out the details, the Treasury Department and the IRS are set to roll out additional guidance this week related to the deductions for tipped workers. While informal guidance, including a look at the infamous “traditionally tipped occupations list,” has been made available previously, the proposed regulations offer more formal guidance.
You can see the initial list here.
What Are Qualified Tips?
The proposed regulations identify…
Read the full article at FORBES.COM
