IRS Guidance on Qualified Tips and Overtime Deductions

On November 21st, 2025, the IRS released new guidance to help employees identify their qualified tips and qualified overtime compensation for deduction purposes under the One Big Beautiful Bill Act.

Importantly, Forms W-2 will not change for the 2025 tax year, and employees will continue to receive the same format they are familiar with.

HR Consulting Group will continue monitoring federal updates to keep employers and employees informed as additional details are released.