IRS Gives Clarity on Tips, Overtime Breaks
More workers will be eligible for the GOP tax law’s breaks for tip and overtime income, at least in the near-term, under guidance the IRS issued Friday.
The guidance also provides clarity for workers about how to go about calculating their exempted earnings. The IRS had already said it wouldn’t penalize employers if they don’t give their workers a separate accounting of their tipped or overtime income for 2025.
The GOP tax law enacted in July sets caps on taxpayers to deduct up to $25,000 of tipped income and up to $12,500 in ...