The U.S. Department of the Treasury and IRS on Friday issued proposed regulations with more details about President Donald Trump 's "no tax on tips" deduction.

Enacted via Trump's "big beautiful bill" in July, the provision allows certain workers to deduct up to $25,000 in "qualified tips" per year from 2025 through 2028. The tax break on tips phases out, or gets smaller, once modified adjusted gross income exceeds $150,000.

Since the measure applies to current-year earnings, it has sparked questions — including which jobs qualify — from tipped workers and tax professionals.

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