Summary
The IRS has released new guidance for the 2025 tax year on how workers can claim deductions for tips and overtime pay. This guidance helps workers know what to do if their employer doesn't separately account for these earnings.
Key Facts
- The IRS issued new guidance on tips and overtime income deductions for tax year 2025.
- The guidance is named Notice 2025-69.
- It explains how workers can figure out their deduction if they didn’t get specific accounting from their employer.
- The IRS is updating tax forms and instructions to help taxpayers with these deductions.
- These updates will be available for taxpayers during the upcoming filing season.
