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Story summary
- The U.S. Department of the Treasury and the Internal Revenue Service (IRS) finalized regulations for the "No Tax on Tips" provision, enabling eligible workers to deduct tips from federal income tax.
- This provision applies to over 70 occupations, including gig workers, if their tips meet specific criteria.
- However, many low-earning tipped workers may not benefit, as over a third did not earn enough to owe income taxes in 2022.
- IRS CEO Frank J. Bisignano highlighted the significance of this tax benefit for American workers.
