Treasury and IRS Issue Proposed Regulations Around “No Tax on Tips” Deduction

WASHINGTON – Today, the Treasury Department and IRS issued proposed regulations identifying the occupations that customarily and regularly received tips before 2025, and therefore may be eligible for the deduction. The proposed regulations also address the definition of “qualified tips” and other requirements taxpayers must comply with to claim the deduction. “I took my first job as a busboy when I was just nine-years old. I cleared tables at a local cafeteria and set up chairs and umbrellas at a beach nearby. And I depended on tips for a significant portion of my income. To this day, tens of millions of Americans depend on tips to feed their families, pay their rent, and make ends meet, said Secretary of the Treasury Scott Bessent. “Through forward-thinking policies like “No Tax on Tips”, the President is boosting paychecks for America’s working families.