taxnews.ey.comPrint

21 November 2025

IRS provides guidance to individual taxpayers for reporting qualified tips and overtime for the 2025 tax year

The IRS on November 21, 2025, in Notice 2025-69 (the Notice), provided individual taxpayers eligible to claim the deduction for tips and overtime for the 2025 tax year with guidance on how to report qualified tips and overtime absent a separate accounting from their employer. The Notice provides multiple examples to illustrate various situations taxpayers may encounter when reporting qualified tips and overtime eligible for the deductions created by the "One Big Beautiful Bill Act" (P.L. 119-21). A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor

Document ID: 2025-2343

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2025, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement