The IRS won’t require employers to separately report tips and overtime in 2025, which may be confusing for employees. New IRS guidance can help taxpayers figure the deductions. The IRS has released ...

Traditionally, all tip income was taxable, and workers had to report any cash tips exceeding $20 per month to their employer. But in 2025, the One Big Beautiful Bill introduced temporary exemptions: ...

Does your business employ individuals who receive tips or overtime pay? Do you make payments to self-employed individuals that include tips? If so, are you aware that under the One Big Beautiful Bill ...

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The U.S. Department of the Treasury and Internal Revenue Service (IRS) has issued long-awaiting guidance in connection with the new reporting requirements imposed by the One, Big, Beautiful Bill Act ...

The latest changes to tax laws impacting tipped income introduce new considerations for hospitality businesses, particularly within the restaurant industry. With these changes starting this tax year, ...

Corrections & Clarifications: An earlier version of this article gave incorrect information about gifts being subject to income taxes. Since President Donald Trump first proposed exempting tips from ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. Investopedia / Photo Composite by ...

Learn how the new ‘no tax on tips’ deduction can reduce your federal taxable income by up to $25,000 if you earn tips at work. “No tax on tips” is the name given to a new tax deduction for tip income ...