On July 4th, 2025, Congress signed into law a bunch of new tax law changes and regulations officially known as the One Big Beautiful Bill Act (OBBBA).

Now, although the OBBA made lots of changes to the tax laws, the one that I’ll be discussing is the one that allows eligible tipped workers in the Food & Beverage industry to deduct up to $25,000 of their reported income earned from tips.

$25,000 is a lot of money to deduct, which is why it’s very important that you understand how this works, because this deduction is only good for tax years 2025 – 2028.

And, obviously, it’s not a straightforward and simple deduction – why would it be? There are a lot of little things that need to be understood so that you know how to take advantage of this deduction. So, in this video, I’m going to break down everything so that you will be ready to file your taxes confidently!

Hopefully, in the video, I explained it well enough so you’ll be ready to tackle your taxes the next time you file them, or even provided you with enough information for you to discuss with your tax professional.

On the other hand, if you still have questions or you don’t have a tax professional, your favorite uncle/cousin is here for you. If you need further assistance, click the "Help Me Unc" button below to make an appointment with me.

And here is the link to the Form 4070A from the IRS so that you can keep track of your tips. Click Here.

Enjoy and God Bless!