Claiming “no tax on tips” deduction for occupations that customarily and regularly receive tips may require an amended return

The Department of the Treasury and the IRS have issued Regulations section 1.224-1 identifying occupations eligible for the “no tax on tips” deduction for tax years beginning after 2024. These final regulations clarify the scope for certain occupational categories previously identified in proposed regulations and add several new occupational categories, including visual artists, floral designers, and gas pump attendants.

Use the list in the regulations, or the list available at IRS.gov/tippedcccupations, to determine if your occupation qualifies your tips for the deduction. Qualified tips are reported on Schedule 1-A (Form 1040). See the instructions for Schedule 1-A in the 2025 Instructions for Form 1040 for details on the additional criteria that must be met for the deduction. 

If you have already filed your 2025 Form 1040, 1040-SR, or 1040-NR and want to claim or change your “no tax on tips” deduction, you may amend your return. For details on filing an amended return, see the Instructions for Form 1040-X (Rev. December 2025) or visit File an amended return on IRS.gov.