The U.S. Treasury Department and IRS on Sept. 19 released details about a provision backed by the Trump administration and Republicans, passed by Congress earlier this year, that would provide a tax break for many employees who receive cash tips.
In a document released on the Federal Register’s website, the agencies outlined what type of jobs and what type of tips are eligible under the new regulations, which were passed as part of the One Big Beautiful Bill Act in July.
It stipulates that people earning a tipped income can deduct as much as $25,000 per year under the measure, instructing the IRS and Treasury Department to find what jobs could qualify. Nearly 70 jobs were eligible for the tax break under guidance that was released earlier this month, while the tax deduction will apply for the tax year 2025, up to Dec. 31 of this year, according to the proposed rules….