tips

No Tax on Tips: IRS’s February 2026 Instruction Change for Gig Workers

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No Tax on Tips: IRS’s February 2026 Instruction Change for Gig Workers

Quick answer: On February 25, 2026, the IRS updated the Form 1040 instructions for the “no tax on tips” deduction. For self-employed tipped workers — including many rideshare drivers and delivery couriers — the update makes the deduction smaller than the earlier instructions suggested. If you filed your 2025 return before that date using the … Read more

No Tax on Tips: What It Means for Gig Workers (2025-2028)

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No Tax on Tips: What It Means for Gig Workers (2025-2028)

Quick answer: Starting with your 2025 tax return (filed in 2026), tipped workers — including many gig economy workers — can deduct up to $25,000 of tip income from their federal taxable income. The break runs through the 2028 tax year. It does not eliminate Social Security or Medicare tax on tips, and it phases … Read more