KEY TAKEAWAYS The IRS has outlined 68 jobs that will be eligible for the new "no tax on tips" deduction. The IRS has listed nearly 70 types of workers eligible to deduct the tips they earn when they file their taxes next year. The 'One Big Beautiful Bill' established a new tax break, allowing taxpayers to deduct the tips they earn from their federal taxes until the end of 2028. This new "no tax on tips" rule essentially means that eligible taxpayers can subtract up to $25,000 in "qualified tips" from their total taxable income, lowering their total federal tax burden. "Qualified Tips," as defined by the IRS, are cash tips received by a worker who customarily and regularly received tips before Dec. 31, 2024.