Tom O'Saben

So if you happen to be in the type of business where tips are common, think about restaurants, bars, beauty salons, all of that, then those are typically tipped industries.

So I would tell people to, if they're really confused, and a lot of people, by the way, even though I'm coming from a national tax organization, I really believe that a lot of taxpayers should be able to prepare their own return.

Not everyone should have to hire a professional.

They made the tax law so complicated that individuals can't do it themselves any longer.

So I'm very much supportive of an educated consumer being able to do this themselves.

So the IRS came out with some guidance this past November.

It actually listed over 70 industries.

that potentially are tipped type workers.

And we think of the obvious ones.

So that will be important to do when tips are, for example, disclosed on a W-2.

I would agree with you.

I have seen just a smattering of the tip deduction.

I've seen much more in the area of overtime.

I'm going to tell you exactly what I do as a tax professional.

Number one, start with last year.

Now, last year would mean 2024.

Look at what you had on your return for 24.

Now, some of these deductions we're talking about today didn't exist in 2024, but that's a portion of your filing.

So look at last year and say, oh yeah, I had interest from this bank or this brokerage account or whatever I had and start by looking at that data.

I would also strongly suggest that people electronically file.