The Treasury Department is moving closer to making President Donald Trump’s “ no tax on tips ” promise a reality. But new guidance released Friday tends to limit the number of tipped workers who will be able to claim the benefit.

The agency on Friday submitted proposed regulations to the Federal Register that includes greater detail on the occupations covered by the rule and who will qualify and what counts as a “qualified tip.”

The “no tax on tips” provision in Republicans’ massive tax and spending law signed by Trump in July eliminates federal income taxes on tips for people working in jobs that have traditionally received them and allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. The deduction phases out for taxpayers with

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