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Qualified Tips Deduction: IRS Final Rule & Occupations List 2026

BySW Accounting admin

Which jobs qualify for the new qualified tips deduction under OBBBA? The IRS final rule under Section 224 lists 68 tipped occupations across 8 categories — from servers and bartenders to barbers, delivery drivers, golf caddies, and digital content creators — capped at $25,000 per year through 2028. The long-awaited IRS final regulations on the…

A flat design illustration showing a stressed employer looking at a pile of tax forms on one side, and a smiling IRS agent holding up a document titled 'Notice 2025-62: Penalty Relief' on the other, with a green checkmark. Vibrant green and orange colors.

IRS Grants 2025 Penalty Relief for OBBBA Tip & Overtime Reporting (W2 and 1099)

BySW Accounting admin

  Confused about Notice 2025-62? We break down the new IRS penalty relief for OBBBA tip and overtime reporting, explaining what it means for employers and employees for the 2025 tax year. If you’re an employer or payroll manager, you’ve probably been tracking the “One, Big, Beautiful Bill Act” (OBBBA) with a mix of curiosity…