The IRS and the Department of the Treasury have issued final regulations regarding the no-tax-on-tips provision of the One Big Beautiful Bill Act, listing the occupations eligible for this tax break.
“The final regulations list more than 70 separate occupations of tipped workers, from bartenders to water taxi operators. Additionally, the final regulations provide clarification on the definition of qualified tips,” the IRS said in an April 10 statement.
Under the One Big Beautiful Bill Act, workers who receive qualified tips may claim the deduction for tax years 2025 through 2028. Eligible workers can deduct a maximum of $25,000 per annum under this provision. The deduction begins to phase out for taxpayers with modified adjusted gross income of more than $150,000, or $300,000 for joint filers….