IRS, Treasury allows $25,000 tax deduction for tipped workers

NORFOLK, Va. — Some workers who rely on tips for their income will be able to deduct up to $25,000 from their income tax.

The Treasury Department and the IRS are now issuing new proposed regulations spelling out which occupations may be eligible for "No Tax on Tips."

Joseph Lavorgna is the Counselor to the Secretary of the Treasury. He told 13News Now, in a space with always-evolving technology and a tipping market that now includes professions like influencers, wedding planners, and even skydiving pilots, the Treasury is adapting to give more money back on tax returns.

But some are concerned that it will come with a deficit in the budget.

“It transcends just the standard, hardworking waiters, waitresses, bartenders; it’s much more expansive," Lavorgna said.

He said the market also in