Rules on Tips Tax Break Clear White House Regulatory Review

Final IRS rules on which workers are eligible for a new tax break on tips are one step closer to being released.

The final rules on occupations traditionally and customarily receiving tips completed their review by the White House Office of Information and Regulatory Affairs on Wednesday, according to OIRA’s website.

Workers earning tipped income can deduct up to $25,000 a year under a provision in the giant tax-and-spending law enacted last year. The tax break is retroactive for tax year 2025 and lasts only through 2028.

The law tasks the IRS and the Treasury ...