Under H.R. 1, P.L. 119-21, the law known as the One Big Beautiful Bill Act (OBBBA), new federal income tax deductions are available for qualified tips and qualified overtime compensation. These deductions are effective for tax years 2025 through 2028.
The IRS has released Form 1099‑MISC, and draft Form 1099‑NEC, on IRS.gov, including new fields for qualified overtime, qualified tips and a tipped occupation code. Draft instructions for forms 1099-MISC and 1099-NEC have also been released.
Final regulations for occupations