The IRS issued final regulations today identifying the type of workers who receive tips that may deduct those tips from income, under the One, Big, Beautiful Bill. The tips must be qualified by meeting certain requirements, including that they be made voluntarily by the customer, and reported by an employer on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or reported by the worker on Form 4137.
The IRS identified 70 types of workers that fall into one of eight categories:
Beverage and Food Service
Entertainment and Events
Hospitality and Guest Services
Home Services
Personal Services
Personal Appearance and Wellness
Recreation and Instruction
Transportation and Delivery
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