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10 April 2026

IRS finalizes regulations on IRC Section 224 deduction for qualified tip income

The IRS and Treasury Department on April 10, 2026, finalized regulations (TD 10044, the Final Regulations) that identify occupations that customarily and regularly received tips on or before December 31, 2024, for purposes of the IRC Section 224 deduction for qualified tips added by the "One Big Beautiful Bill Act." The Final Regulations, applicable to tax years beginning after December 31, 2024, also define qualified tips for purposes of the deduction. A Tax Alert is forthcoming.

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

Document ID: 2026-0838

 

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