Who are Household Employers The IRS defines a “household employee” as a worker you pay who does household work under your control. It does not matter whether the work is full-time or part-time. It also does not matter whether you pay the worker on an hourly, daily or weekly basis or if you pay the […]
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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 […]