India, Nov. 22 -- The US Department of the Treasury and the Internal Revenue Service (IRS) on November 21, published a detailed guidance for workers eligible to claim new tax deductions on tips and overtime compensation for the 2025 tax year under the One Big Beautiful Bill Act (OBBBA).

Here's a breakdown of what the guidance means for employees and what steps they should take ahead of the next tax filing season.

Qualified tips" include voluntary cash or card tips (not forced service charges), even if they were not separately reported by the employer.

Workers in traditionally tipped occupations can deduct up to $25,000 of "qualified tips" for the tax year 2025.

The deduction phases out for individuals with modified adjusted gross inco...