2025-19634Proposed Rule

IRS Dials In Tipped Jobs Tax Deduction – Phone Only!

Published Date: 10/23/2025

Proposed Rule

Summary

The IRS is updating rules about which jobs usually get tips and what counts as "qualified tips" for tax deductions. This affects workers in tip-earning jobs and businesses that report tips. A public hearing set for October 23, 2025, will now be held by phone, and your comments can help shape the final rules.

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Which Jobs Count as Tip-Earning

The IRS published proposed regulations that will identify occupations that "customarily and regularly received tips" on or before December 31, 2024, and will define what counts as "qualified tips" for the income tax deduction for qualified tips. This proposal affects workers in tip-earning jobs and businesses that report tips.

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Key Dates

Published Date
10/23/2025

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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