Sources

Citation index

• irc-199a-sstb-defnIndependent review pending

  26 USC §199A(d)(2); 26 CFR §1.199A-5

  'Specified service trade or business' is defined in §199A(d)(2) and 26 CFR §1.199A-5 as: any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services; investing/investment management; trading/dealing in securities, partnership interests, or commodities; OR any trade or business where the principal asset is the reputation or skill of one or more of its employees.

  Primary URL

  https://www.law.cornell.edu/cfr/text/26/1.199A-5

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irc-6051-a-18Independent review pending

  26 USC §6051(a)(18); P.L. 119-21 §70201

  IRC §6051(a)(18) requires employers to report on Form W-2 the amount of cash tips described in §224(d) and the TTOC of each tipped occupation in which the employee received tips during the year — the statutory hook for Box 14b TTOC and Box 12 code TP.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/6051

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irc-6051-a-19Independent review pending

  26 USC §6051(a)(19); P.L. 119-21 §70202

  IRC §6051(a)(19) requires employers to report on Form W-2 the amount of qualified overtime compensation described in §225(c) — the statutory hook for Box 12 code TT.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/6051

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irs-form-4852Independent review pending

  IRS Form 4852 (Substitute for Form W-2); 26 USC §6051

  Form 4852 (Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R) is the IRS-blessed worker remedy when an employer refuses, fails, or is unable to issue a Form W-2 or a corrected Form W-2c. The taxpayer attaches Form 4852 to the return, reconstructs wages and tax withheld from paystubs and personal records, and explains the efforts made to obtain a corrected W-2 from the employer. Per the Form 4852 instructions, the IRS generally expects the taxpayer to allow at least a reasonable period (commonly cited as 30 days) for the employer to respond before filing Form 4852.

  Primary URL

  https://www.irs.gov/forms-pubs/about-form-4852

  Last verified

  2026-05-08

  Reviewer

  Independent review pending

• irs-fs-2025-03Independent review pending

  IRS FS-2025-03

  IRS Fact Sheet FS-2025-03 (released July 14, 2025; updated July 25, 2025) confirms the $25,000 tips cap, $12,500/$25,000 overtime caps, and $150,000/$300,000 MAGI thresholds; effective TY2025–TY2028.

  Primary URL

  https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irs-fs-2026-01-otIndependent review pending

  IRS FS-2026-01

  IRS Fact Sheet FS-2026-01 (Jan 23, 2026) — Q&A on the qualified-overtime-compensation deduction; confirms FLSA §7 framing and 'half' portion of time-and-a-half framework.

  Primary URL

  https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irs-ir-2025-92Independent review pending

  IR-2025-92; REG-110032-25

  IRS news release IR-2025-92 (September 19, 2025) — proposed-regulation TTOC list (REG-110032-25); 8 categories of occupations (100s–800s).

  Primary URL

  https://www.irs.gov/newsroom/treasury-irs-issue-guidance-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irs-ir-2026-49Independent review pending

  IR-2026-49

  IRS news release IR-2026-49 (April 10, 2026) — final-regulation TTOC list announcement.

  Primary URL

  https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• irs-tax-tip-2026-06Independent review pending

  IRS Tax Tip 2026-06

  IRS Tax Tip 2026-06 (Jan 26, 2026) — taxpayer-facing summary of how to take advantage of No Tax on Tips and No Tax on Overtime; confirms caps and MAGI thresholds.

  Primary URL

  https://www.irs.gov/newsroom/one-big-beautiful-bill-how-to-take-advantage-of-no-tax-on-tips-and-overtime

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• notice-2025-69-pubIndependent review pending

  IRS Notice 2025-69; IRB 2025-50

  IRS Notice 2025-69 was released November 21, 2025 (IR-2025-114) and published in Internal Revenue Bulletin 2025-50.

  Primary URL

  https://www.irs.gov/newsroom/treasury-irs-provide-guidance-for-individuals-who-received-tips-or-overtime-during-tax-year-2025

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• obbba-pl-119-21Independent review pending

  P.L. 119-21 (July 4, 2025)

  OBBBA was enacted as P.L. 119-21 on July 4, 2025; the qualified-tips and qualified-overtime deductions are in Title VII §§ 70201–70202.

  Primary URL

  https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-cap-12500-25000Independent review pending

  26 USC §225(b)(1)

  Qualified-overtime-compensation deduction is capped at $12,500 per taxable year ($25,000 for joint return).

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-effective-2025Independent review pending

  P.L. 119-21 §70202(g); 26 USC §225 (effective date note)

  §225 applies to taxable years beginning after December 31, 2024.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-flsa-defnIndependent review pending

  26 USC §225(c)

  'Qualified overtime compensation' is overtime compensation required under §7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (i.e., the 'half' portion of 'time-and-a-half'); does not include qualified tips.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-magi-phaseoutIndependent review pending

  26 USC §225(b)(2)

  Overtime deduction reduces by $100 for each $1,000 of MAGI above $150,000 (single) / $300,000 (joint) — same 10% reduction rate as tips; deduction not reduced below zero.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-mfj-requiredIndependent review pending

  26 USC §225(e)

  Married taxpayers must file jointly to claim the §225 overtime deduction.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-ssn-requiredIndependent review pending

  26 USC §225(d)

  Taxpayer must include SSN on return to claim the §225 overtime deduction.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ot-sunset-2028Independent review pending

  26 USC §225(g)

  No qualified-overtime deduction allowed for any taxable year beginning after December 31, 2028.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/225

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• schedule-1a-claimIndependent review pending

  Form 1040 Schedule 1-A (2026 draft)

  Taxpayers claim the qualified-tips deduction (and qualified-overtime deduction) on Schedule 1-A (Form 1040) for TY2026.

  Primary URL

  Final URL pending publication — verification in progress.

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• td-10044-pubIndependent review pending

  TD 10044; 91 FR 19026; RIN 1545-BR63

  Treasury Decision 10044 ('Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips') was published April 13, 2026 in 91 FR 19026–19056 (RIN 1545-BR63); effective June 12, 2026; applies retroactively to taxable years beginning after December 31, 2024.

  Primary URL

  https://www.federalregister.gov/documents/2026/04/13/2026-07104/occupations-that-customarily-and-regularly-received-tips-definition-of-qualified-tips

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-cap-25kIndependent review pending

  26 USC §224(b)(1)

  Qualified-tips deduction is capped at $25,000 per taxable year.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-cash-equivalentIndependent review pending

  26 CFR §1.224-1(b)

  Cash tips include tips paid by check, credit card, debit card, gift card, or mobile/electronic payment; excludes digital assets (cryptocurrencies and stablecoins per §6045(g)(3)(D)) and noncash items (event tickets, meals, services).

  Primary URL

  https://regulations.justia.com/regulations/fedreg/2026/04/13/2026-07104.html

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-effective-2025Independent review pending

  P.L. 119-21 §70201(g); 26 USC §224 (effective date note)

  §224 applies to taxable years beginning after December 31, 2024.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-magi-phaseoutIndependent review pending

  26 USC §224(b)(2)

  Tips deduction reduces by $100 for each $1,000 of MAGI above $150,000 (single) / $300,000 (joint) — i.e., 10% reduction rate; deduction not reduced below zero.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-mfj-requiredIndependent review pending

  26 USC §224(e)

  Married taxpayers must file jointly to claim the §224 tips deduction.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-qualified-defnIndependent review pending

  26 CFR §1.224-1(b); P.L. 119-21 §70201; IRS news release IR-2026-49

  'Qualified tips' means cash tips received from customers (or through tip-sharing arrangements such as a tip pool) by an individual in a listed TTOC occupation, paid voluntarily by the customer, not subject to negotiation, with the customer free to set the amount (including zero); excludes mandatory service charges, automatic gratuities, surcharges, tips paid in digital assets, and tips for illegal activity.

  Primary URL

  https://www.federalregister.gov/documents/2026/04/13/2026-07104/occupations-that-customarily-and-regularly-received-tips-definition-of-qualified-tips

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-ssn-requiredIndependent review pending

  26 USC §224(d)

  Taxpayer must include Social Security Number on return to claim the §224 tips deduction.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-sstb-exclusionIndependent review pending

  26 USC §224(d) (cross-ref to §199A(d)(2)); 26 USC §199A(d)(2)

  Qualified tips do not include amounts received in a 'specified service trade or business' as defined in §199A(d)(2). NOTE: §1.224-1(g) is RESERVED in the final reg; under IRS Notice 2025-69 §6 transition relief, any occupation that customarily and regularly received tips on or before 2024-12-31 is currently NOT treated as SSTB.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-sunset-2028Independent review pending

  26 USC §224(h)

  No qualified-tips deduction is allowed for any taxable year beginning after December 31, 2028.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/224

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• tip-ttoc-listIndependent review pending

  TD 10044; 26 CFR §1.224-1; 91 FR 19026–19056 (Apr 13, 2026)

  Treasury's final list of tipped occupations (the TTOC list) is in 26 CFR §1.224-1; published as TD 10044 in 91 FR 19026 on April 13, 2026; effective June 12, 2026; applies to taxable years beginning after December 31, 2024 and before January 1, 2029. 71 occupations in eight categories (100s–800s).

  Primary URL

  https://www.federalregister.gov/documents/2026/04/13/2026-07104/occupations-that-customarily-and-regularly-received-tips-definition-of-qualified-tips

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ty2025-amend-windowIndependent review pending

  26 USC §6511(a)

  A TY2025 return is amendable through the later of three years from the date the return was filed or two years from the date the tax was paid; for a return filed by the standard April 15, 2026 deadline, this generally means amendable through April 15, 2029.

  Primary URL

  https://www.law.cornell.edu/uscode/text/26/6511

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ty2025-sstb-reliefIndependent review pending

  IRS Notice 2025-69 §6 (SSTB transition relief); 26 CFR §1.224-1(g) (Reserved) per TD 10044

  Until Treasury finalizes SSTB rules under §1.224-1(g) (currently RESERVED per TD 10044), any occupation that customarily and regularly received tips on or before December 31, 2024 is treated as NOT in an SSTB. This transition relief continues to apply for TY2026 unless and until Treasury finalizes SSTB rules in a subsequent regulatory package.

  Primary URL

  https://www.irs.gov/irb/2025-50_IRB

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ty2025-transition-otIndependent review pending

  IRS Notice 2025-69 §4 (qualified overtime transition)

  For TY2025, if qualified overtime is not provided in Box 14 of Form W-2 or on a separate statement, an FLSA-eligible employee may treat the separate-accounting requirement as satisfied if qualified overtime is properly reported on Form W-2, 1099-NEC, or 1099-MISC, without regard to §6051(a)(19); seven approximation methods (A–G) provided.

  Primary URL

  https://www.irs.gov/irb/2025-50_IRB

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• ty2025-transition-tipsIndependent review pending

  IRS Notice 2025-69 §3 (qualified tips transition)

  For TY2025, an employee may treat the §224(a) requirement as satisfied if cash tips are properly reported on Form W-2, without regard to the requirements of §6051(a)(18).

  Primary URL

  https://www.irs.gov/irb/2025-50_IRB

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• w2-box12-tp-tt-taIndependent review pending

  IRS 2026 General Instructions for Forms W-2 and W-3

  TY2026 Form W-2 introduces three new Box 12 codes: TP (total amount of cash tips reported to the employer), TT (total amount of qualified overtime compensation — the 'half' portion of time-and-a-half), and TA (employer contributions to a Trump account, IRC §128). Effective for the 2026 tax year.

  Primary URL

  https://www.irs.gov/forms-pubs/about-form-w-2

  Last verified

  2026-05-07

  Reviewer

  Independent review pending

• w2-box14b-ttocIndependent review pending

  IRS 2026 General Instructions for Forms W-2 and W-3

  TY2026 Form W-2 introduces Box 14b for the Treasury Tipped Occupation Code (TTOC). Up to two TTOCs may be reported per employee. Code '000' is entered for non-qualifying occupations. Employees use the TTOC when claiming the tips deduction on Schedule 1-A (Form 1040). Effective for the 2026 tax year (W-2s issued by January 31, 2027).

  Primary URL

  https://www.irs.gov/forms-pubs/about-form-w-2

  Last verified

  2026-05-07

  Reviewer

  Independent review pending