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Our answer to most tax related questions, of course, is “it depends”; like most things tax-related, the answer is tailored to each client’s circumstances and goals.  Since it’s passing  our office has spent countless hours attending seminars focused entirely on the newly passed One Big Beautiful Bill Act (OBBBA), Public Law 119-21. We’ve been learning the law and discussing how to educate our clients (and ourselves). Working up tax planning and tax minimization ideas for 2024 (where applicable), 2025, and 2026,+++, and we’ll continue to do so as technical corrections and guidance are released. This is giving us a lot to think about/talk about.

Since it’s passing, I have been highlighting different portions of the law in my weekly blog posts to start us thinking/talking/planning. This isn’t about quick answers or solutions which are like “putting a band-aid on a bullet hole”🩹🚫. These “quick questions” are just jumping-off points for deeper conversations, just as these blog posts are designed to get you thinking… but the real answers will depend on your short-term and long-term financial goals.

💵 This Week’s Focus AGAIN!!!: “No Tax on Tips”….MAYBE; we have some clarification from the IRS regarding those occupations that are covered; please do read through the specifics about this deduction as discussed in my August 8th blog post but first check through this list, and no whining if your occupation does not show up here in the US Treasury’s preliminary list of occupations that customarily and regularly receive tips; this will be used for purposes of the “no tax on tips” provision One Big Beautiful Bill Act (OBBBA), Public Law 119-21.  The IRS has also just issued their September 19th IRS Newswire:  IR-2025-92

The official proposed list of such occupations will be part of forthcoming proposed regulations. The IRS anticipates that the official proposed list will be substantially the same as the preliminary list.

In addition to requiring that qualified tips must be received in an occupation that customarily and regularly received tips on or before Dec. 31, 2024, under the “no tax on tips” provision, tips do not qualify for the deduction if they are received in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics.

The provision in H.R. 1 allows workers in certain occupations to claim the deduction of up to $25,000 for qualified tips from tax year 2025 through tax year 2028.

🍽️Beverage & Food Service

• Bartenders
• Wait staff
• Food servers, nonrestaurant (their term)
• Dining room and cafeteria attendants and bartender helpers
• Chefs and cooks
• Food preparation workers
• Fast-food and counter workers
• Dishwashers
• Host staff, restaurant, lounge, and coffee shop
• Bakers

🎭Entertainment & Events

• Gambling dealers
• Gambling change persons and booth cashiers
• Gambling cage workers
• Gambling and sports book writers and runners
• Dancers
• Musicians and singers
• Disc jockeys, except radio
• Entertainers and performers
• Digital content creators
• Ushers, lobby attendants, and ticket takers
• Locker room, coatroom, and dressing room attendants

🏨Hospitality & Guest Services

• Baggage porters and bellhops
• Concierges
• Hotel, motel, and resort desk clerks
• Maids and housekeeping cleaners

🛠️Home Services

• Home maintenance and repair workers
• Home landscaping and groundskeeping workers
• Home electricians
• Home plumbers
• Home heating and air conditioning mechanics and installers
• Home appliance installers and repairers
• Home cleaning service workers
• Locksmiths
• Roadside assistance workers

🎥Personal Services

• Personal care and service workers
• Private event planners
• Private event and portrait photographers
• Private event videographers

📊 A Few Numbers to Note

• The deduction phases out for high earners:
  • For singles earning $150k–$400k, deduction reduces by 10% until phased out
  • For joint filers earning $300k–$550k, deduction reduces by 10% until phased out
• Most taxpayers with very low income won’t benefit, since they already pay $0 federal income tax
• Tax bracket = tax savings:
  • $100 deduction = $10 tax break in the 10% bracket
  • $100 deduction = $37 tax break in the 37% bracket

 IRS Resource for More Info: OBBBA Tax Deductions Overview

🧠 Final Thoughts:

Let the Planning Begin…So keep the “quick questions” coming and let’s keep the discussions going until we can be sure we have the best answer or solution — not just for your taxes, but for your goals.  Reporting tips got a whole lot more complicated — for both employees and employers — but it’s also a planning opportunity (yes, really).

👉 Seems like this is another call to action — no wishful thinking, no “I wish I had…”let’s be proactive, not reactive.

Feel free to search our website for some of our complementary resources or get in touch:  Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.  Use our search box for those posts specific to tax minimization, business planning, business best practices, casualty losses, etc. and see what “pop’s” up.