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IRS issues final regulations on tips tax break - WCS - Tax Accountant in Elkton MD
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IRS issues final regulations on tips tax break - WCS - Tax Accountant in Elkton MD
Last year, a new income tax deduction for qualified cash tips went into effect under the One Big Beautiful Bill Act (OBBBA). The break is scheduled to expire after 2028. In September 2025, the IRS released proposed regulations to provide guidance for taxpayers. The IRS has now published final regs that largely mirror the proposed regs but also include some important clarifications and additions. What does the deduction cover? Under the OBBBA, in…
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