💰 Tax-Free Tips? Deduct Up to $25K Under New IRS Rule!

The IRS has provided information on how certain provisions in the new law, including no tax on tips, should be executed. Employees and self-employed workers in certain professions (for example, food servers and bartenders) may deduct up to $25,000 in cash or credit card tips paid voluntarily by their customers. Tip income should be reported on Form W-2, Form 1099 or Form 4137. The tip deduction phases out for taxpayers with adjusted gross income of more than $150,000 ($300,000 for joint filers). Self-employed individuals engaged in a Specified Service Trade or Business and employees of these organizations are ineligible for the deduction. For more: https://bit.ly/4f2v3qc.