DawnC
Employee Tax Expert

Get your taxes done using TurboTax

No; it will work the same as previous years.   You will be prompted to enter your tips, but TurboTax will figure the deduction based on your information.   Be sure to track all of your tips.  Keep meticulous records (logs) of all cash, credit card, and digital tips received, noting dates and amounts, as these form your "qualified tips".    Continue reporting cash tips to your employer so they appear in Box 7 (Social Security Tips) of your W-2.

 

For more details on tip income in 2025 and the interaction with the One Big Beautiful Bill Act (OBBBA), see this IRS Guidance Document.

 

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