Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year. But which workers will qualify for the new deductions ...

Tipped workers will be able to deduct up to $25,000 in tips from their taxable income beginning in 2025. To help sort out the details, the Treasury and the IRS are rolling out additional guidance.

The new, special tax deduction on tips is retroactive and applies to eligible tip income earned in all of 2025. The tax break on tip income runs from 2025 through 2028. Tax professionals raise red ...

The new “no tax on tips” and “no tax on overtime” deductions require additional reporting by employers and other payers. However, rather than require more reporting this late in 2025, the IRS is ...

Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks. IRS gives some very specific examples in ...

Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks. IRS gives some very specific examples in ...

For months, Tyler Heller, an assistant manager at the Central Co-op on Capitol Hill, was skeptical that Congress would eliminate federal income taxes on tips and overtime pay. To his surprise, the new ...

President Trump's promise of "no tax on tips" and "no tax on overtime" is finally moving from campaign slogan to practical reality, as the Internal Revenue Service begins spelling out how workers and ...