IRS Issues Guidance on Tip Occupations
OBBBA created a new deduction for certain Tip income. The IRS released which employees will be eligible.
The One Big Beautiful Bill Act created a new Tip deduction for those employees and independent contractors that typically receive tip income. The Act required the Treasury Department to issue those industries that typically involve tip compensation by October 2, 2025.
It appears they are a month early since this guidance was issued yesterday.
The document contains a comprehensive, categorized list of occupations that the Treasury and IRS have identified as having "customarily and regularly received tips on or before December 31, 2024". This list is summarized into major categories as follows:
