Who qualifies for the Treasury’s ‘no tax on tips’? The answer is complicated

Core Points - The "no tax on tips" deduction was signed into law as part of Trump's "Big, Beautiful Bill" on July 4, with bipartisan support, but not all tipped workers will qualify for it [1] - Eligible workers can deduct up to $25,000 of "qualified tips" received on or before December 31, 2024, with income thresholds affecting the deduction amount [2] - Jobs classified as "specified service trade or businesses" (SSTB) are not eligible for the deduction, leading to potential confusion among workers [3] SSTB Classification - SSTBs include healthcare workers, legal professionals, financial service workers, performers, and athletes, all of whom may earn significant income from tips [4] - The classification of SSTBs is broad, potentially affecting a large number of workers who may be disappointed during tax season [3][4]