Last Updated on September 8, 2025 by What You Need to Know About the \u201cNo Tax on Tips\u201d Provision in the One Big Beautiful Bill Act Earlier this summer, service … <\/p>\n","protected":false},"author":2,"featured_media":40308,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-40307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/40307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40307"}],"version-history":[{"count":1,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/40307\/revisions"}],"predecessor-version":[{"id":40309,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/40307\/revisions\/40309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/media\/40308"}],"wp:attachment":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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Last Updated on September 8, 2025 by<\/p>\n
What You Need to Know About the \u201cNo Tax on Tips\u201d Provision in the One Big Beautiful Bill Act<\/strong><\/p>\n Earlier this summer, service workers across the nation received welcome news: the enactment of the One Big Beautiful Bill Act (OBBBA)<\/strong> has ushered in a widely anticipated tax relief measure\u2014the \u201cNo Tax on Tips\u201d<\/strong> provision.<\/p>\n Signed into law on July 4, 2025<\/strong>, by President Donald Trump, OBBBA rolls back trillions in expiring tax cuts and introduces targeted deductions\u2014including a powerful break aimed specifically at tipped workers.<\/p>\n Under the new law, eligible service workers can deduct up to $25,000<\/strong> of their cash tip income<\/strong> from federal taxable income\u2014starting with earnings in 2025 (tax returns filed in 2026).<\/p>\n To qualify, a worker must:<\/p>\n <\/p>\n The IRS and Treasury have released a preliminary list of 68 occupations<\/strong> eligible for this deduction\u2014spanning traditional service roles like waitstaff and bartenders, as well as unexpected ones<\/strong> like podcasters, influencers, wedding planners, electricians, and gaming workers.<\/p>\n While the law has generous intent, its real-world impact is mixed:<\/p>\n <\/p>\n Tipped workers need not wait. The deduction applies retroactively to income earned in 2025\u2014so when filing taxes in early 2026, those who qualify can claim it. Over the next few months, the Treasury and IRS<\/strong> are expected to finalize detailed eligibility guidelines and application procedures.<\/p>\n For many in the hospitality and service sectors, tax relief for service workers<\/strong> through the \u201cNo Tax on Tips\u201d law may offer welcome breathing room. Yet, with modest average savings and offsetting benefit cuts, the overall impact may fall short of expectations.<\/p>\n As the policy unfolds, it\u2019s crucial to monitor updates in IRS guidance and evaluate how these changes affect individual finances\u2014and whether additional reforms are needed to support workers in a more holistic way.<\/p>\n\n
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\n Feature<\/strong><\/th>\n Details<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n \n Deduction amount<\/strong><\/td>\n Up to $25,000 in cash tip income (2025\u20132028)<\/td>\n<\/tr>\n \n Income limits<\/strong><\/td>\n Phases out over $150,000 (single), $300,000 (joint)<\/td>\n<\/tr>\n \n Eligible occupations<\/strong><\/td>\n Stars, stylists, servers\u2014and even podcasters and electricians<\/td>\n<\/tr>\n \n Tax types affected<\/strong><\/td>\n Federal income tax only\u2014tips still count for Social Security and Medicare<\/td>\n<\/tr>\n \n Potential savings<\/strong><\/td>\n Roughly $1,800\/year for those who benefit<\/td>\n<\/tr>\n \n Criticism<\/strong><\/td>\n Unequal benefits, may aid tip-based economy, deficit concerns<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n