The Internal Revenue Service issued guidance Friday for workers eligible to claim the deduction for tips and overtime income for tax year 2025.
Notice 2025-69 provides clarification on how to determine the amount of their deduction if a worker didn’t receive a separate accounting from their employer for cash tips or qualified overtime on returns.
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The IRS says it’s in the process of updating income tax forms and instructions for taxpayers to use this filing season that will assist them in claiming these deductions.
