People working in an occupation on an approved list who receive qualified tips would be eligible for the tax benefit.
The tip must be voluntarily given, so mandatory tips or auto-gratuities would not qualify for the “no tax on tips” benefit.
Tipped workers will be able to deduct up to $25,000 in tips beginning in 2025. To help sort out the details, the Treasury and the IRS are rolling out additional guidance.
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