New Tax Rules for Tipped Workers

CHATTANOOGA, Tenn. (WDEF) – Tax season has arrived, and new federal tax changes could impact how many Americans file their 2025 tax returns, particularly people who earn tips or overtime pay.

Recent updates to the tax code include new deductions connected to tips and overtime earnings. 

These changes could affect how income is reported and calculated, making this filing season more detailed than in previous years. 

Servers, bartenders, and others working in service-based jobs may need to pay closer attention to how tip income and extra hours are documented on their returns.

Staying organized can make a big difference. Keeping pay stubs, tip records, and other tax documents in one place may help reduce confusion and delays when filing. 

Those who experienced major life changes over the past year, such as getting married, having a child, or moving to a new state, may also see differences in how their returns are processed under the updated rules.

With the IRS tax filing deadline set for April 15, taxpayers are encouraged to start preparing early to avoid last minute stress and potential filing issues.