IRS clarifies 2025 tip, overtime deductions
The IRS issued Notice 2025-69 on Nov. 21, 2025, clarifying how eligible workers can calculate deductions for tips and qualified overtime income for tax year 2025, including cases where employers did not separately account for cash tips or qualified overtime. The agency said it will update income tax forms and instructions for this filing season to help taxpayers claim these deductions.
U.S. Tax Policy
IRS
đ Key Facts
- IRS Notice 2025-69 provides guidance for tip and qualified overtime deductions for TY2025
- Clarifies calculation when employers did not separately account for cash tips or qualified overtime
- IRS will update 2025 filing-season forms and instructions to assist taxpayers