Video Tips: What Is the New No Tax On Tips Rule?

With the passage of the “One Big Beautiful Bill Act,” workers in tip-based professions gain a significant new tax benefit: an above-the-line deduction for qualified tips. This deduction allows employees in industries where tipping is customary to reduce their taxable income by up to $25,000 annually, provided their adjusted gross income falls below certain thresholds. By helping workers retain more of their hard-earned money, this provision offers a substantial financial advantage to those earning tips.

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The Most Important Thing to Have Ready

If you received a notice or letter from the IRS or Oklahoma Tax Commission, keep it available. That document usually tells us what the agency is requesting, the deadlines involved, and what information we may need next.

What Happens Next?

Our staff will first gather some basic information and determine whether the matter is something our firm can assist with.

If appropriate, the next step is a paid one-hour strategy meeting with former IRS Revenue Agent, Austin Murray, CPA. During that meeting, we review the notices and relevant records in detail and discuss the available options.

If you engage Millennial Accounting for representation, the consultation fee is applied toward the representation retainer.

Helpful Documents to Have Available

  • IRS or Oklahoma Tax Commission notices

  • Prior tax returns

  • Accounting or payroll records

  • Previous correspondence with the taxing agency

  • Any documents specifically requested in the notice

Important:
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