No Tax on Tips: A New Deduction

The “No Tax on Tips” Act, part of the One Big Beautiful Bill Act (OBBBA), allows for a new federal income tax deduction of up to $25,000 for “qualified tips” received in tax years 2025 through 2028. This applies to both W-2 employees and independent contractors who receive Form 1099-NEC. Eligibility Requirements Deduction  Reporting Tips and Claiming the […]

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