2025-18278Proposed RuleSignificantWallet

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

Effective Date
Published Date
Comments Due
12/31/2024
9/22/2025
10/22/2025

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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