09/03/2026
The IRS gave an update to the NO TAX on Tips and NO TAX on OVERTIME rules from The One Big Beautiful Bill. These provisions are set to expire in 2028, but the IRS has made some adjustments for 2026. The employer is now responsible for indicating all qualified overtime. Any missing overtime or errors need to be adjusted by the employer.
The IRS has also added new fields when it comes to those who qualify for the no tax on tips provision. Income thresholds still apply and so do deduction maximums. Those have not changed from last year to this year.
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