{"id":10538,"date":"2025-09-23T14:44:14","date_gmt":"2025-09-23T19:44:14","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=10538"},"modified":"2026-06-26T05:29:15","modified_gmt":"2026-06-26T10:29:15","slug":"irs-releases-proposed-regulations-on-qualified-tips-under-obbba","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/payroll\/employee-taxes\/irs-releases-proposed-regulations-on-qualified-tips-under-obbba\/","title":{"rendered":"IRS releases proposed regulations on qualified tips under OBBBA"},"content":{"rendered":"\n
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Written by: <\/p>\n\n\n

Rena Pirsos<\/a><\/div><\/div>\n\n\n\n
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Share<\/p>\n\n\n

<\/a><\/a><\/a><\/a><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

The One Big Beautiful Bill Act (OBBBA)<\/a>, enacted in July, allows employees who work in jobs that were traditionally tipped occupations on or before December 31, 2024, to deduct up to $25,000 in qualified tips on their personal income tax returns. As required by the OBBBA, the IRS issued proposed regulations<\/a> (which are proposed to apply starting with tax year 2025) that define the tipped jobs that qualify for this deduction. The regulations also affect employer wage reporting on Form W-2, Wage and Tax Statement.<\/p>\n\n\n\n

Although currently in proposed form, employers may rely on the regulations for tax years beginning after December 31, 2024, and on or before the date they are published as final regulations in the Federal Register<\/a>.<\/p>\n\n\n\n

What are qualified tips?<\/h2>\n\n\n\n

Under the proposed regulations, qualified tips are cash or charged tips voluntarily given by service recipients, including:<\/p>\n\n\n\n