IRS issues guidance on tax on tips and overtime income for 2025 Economy Nov 21, 2025 11:12 AM EST

The Internal Revenue Service issued guidance Friday for workers eligible to claim the deduction for tips and overtime income for tax year 2025.

Notice 2025-69 provides clarification on how to determine the amount of their deduction if a worker didn’t receive a separate accounting from their employer for cash tips or qualified overtime on returns.

READ MORE: Killing taxes on tips sounds good, but experts say it doesn’t solve the real problem

The IRS says it’s in the process of updating income tax forms and instructions for taxpayers to use this filing season that will assist them in claiming these deductions. A free press is a cornerstone of a healthy democracy.

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