Becky breaks down the new no-tax-on-tips deduction and what it really means for tipped workers. She explains that eligible employees may be able to deduct up to $25,000 using the new Form 1A, provided their income falls within the qualifying limits (up to $150,000 for single filers and $300,000 for married couples filing jointly).

Becky also explains how employers should report tips separately on your W-2, and how self-employed workers—such as rideshare or delivery drivers—must report their tips correctly.

Finally, she walks through Form 4137, which is used to report Social Security and Medicare tax on tips, and reminds viewers of an important truth: tips are always taxable, including cash tips. Failing to report them can cost you thousands of dollars in Earned Income Credit refunds and may reduce your future Social Security benefits.