IRS Defines Tip Jobs for Tax Deduction Clarity
Published Date: 9/22/2025
Proposed Rule
Summary
If you earn tips at work, these new rules show which jobs count as tip-earning and explain what counts as 'qualified tips' for tax deductions. The changes apply to tips received up to December 31, 2024, helping workers and employers know exactly what tips can lower their taxes. Get ready to keep better track of your tips and maybe save some money when tax time rolls around!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Which Jobs Count as Tipped Roles
The proposed rule lists occupations that 'customarily and regularly received tips' on or before December 31, 2024. If you receive tips as part of your job, this tells you whether your occupation is treated as a tip-earning occupation for tax purposes for tips received up through December 31, 2024.
Definition of 'Qualified Tips' For Deduction
The proposed rule provides a definition of 'qualified tips' for purposes of the income tax deduction for qualified tips. If you receive tips as part of your occupation, this definition determines which tips can be treated as deductible qualified tips for tips received on or before December 31, 2024.
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Key Dates
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