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IRS Clarifies Tip and Overtime Income Deductions for 2025

11/22/2025

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Summary

Story summary

The Internal Revenue Service issued guidance on November 21, 2025, in Notice 2025-69, clarifying deductions for tips and overtime income for tax year 2025.
Notice 2025-69 explains how workers determine their deduction amount if they did not receive separate employer accounting for cash tips or qualified overtime.
The IRS is updating income tax forms and instructions to help taxpayers claim these deductions during the filing season.

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Story summary

The Internal Revenue Service issued guidance on November 21, 2025, in Notice 2025-69, clarifying deductions for tips and overtime income for tax year 2025.
Notice 2025-69 explains how workers determine their deduction amount if they did not receive separate employer accounting for cash tips or qualified overtime.
The IRS is updating income tax forms and instructions to help taxpayers claim these deductions during the filing season.