US govt relaxes rules on ‘No Tax on Tips’ directive – Which jobs will benefit?
The IRS has changed the 'No Tax on Tips' rule, which was part of the 'One Big Beautiful Bill Act', to benefit more workers. This will exclude up to $25,000 of 'qualified tips' from taxable income for those in specific occupations. The maximum overtime deduction is now $12,500 for individuals and $25,000 for joint filers.