🔴 BREAKING — IRS Published Qualifying Occupations List — April 2026

Restaurant Owners: The IRS Just Created Two Major Tax Breaks —
and Most Owners Are Missing Both

The "No Tax on Tips" provision is national news. But it works even better when combined with a tax credit that's been quietly saving restaurant owners $40K–$250K/year since 1993. Here's what your CPA probably hasn't told you.

$250K+
Max combined annual recovery
3 yrs
You can claim back retroactively
60 sec
To estimate your credits
📰 As seen on CNBC (April 2026): "IRS publishes list of occupations that qualify for 'no tax on tips' provision" — The Big Beautiful Bill introduced a tax provision that allows some workers to deduct the tips they earn.

The Two Tax Breaks Every Restaurant Owner Needs to Know

They work at different levels — one for your employees, one for you as the employer. Together they represent the most powerful tax relief the restaurant industry has seen in decades.

🆕 NEW — 2025 LAW

"No Tax on Tips" Provision

Part of the One Big Beautiful Bill Act (H.R.1, passed July 2025). The IRS published the qualifying occupations list in April 2026. Allows tipped workers in qualifying jobs to deduct their tip income from federal taxes.

Up to 100%
of tip income potentially tax-exempt for qualifying employees
✅ SINCE 1993 — MASSIVELY UNDERUSED

FICA Tip Credit (Section 45B)

A dollar-for-dollar federal tax credit that lets you recover 7.65% of FICA taxes you already paid on employee tips above $5.15/hr. Now expanded to include beauty salons and spas (OBBBA 2025).

$25K–$250K/yr
average recovery per restaurant location

⚡ Combined: The Restaurant Tax Stack

Almost no CPA is presenting both programs simultaneously. Used together, they can eliminate a significant portion of your annual payroll tax burden — and you can recover 3 years retroactively.

$750,000+
potential 3-year combined recovery for a multi-location restaurant group

Why Your Accountant Hasn't Told You Both

⚡ 60-Second Recovery Estimate

Answer 3 questions and we'll calculate your estimated FICA Tip Credit recovery — plus tell you if you qualify for the new "No Tax on Tips" expansion.

What Business Owners Are Recovering

★★★★★

"We had no idea the FICA Tip Credit existed. After the analysis, we filed amended returns for 3 years and recovered $87,000. Our accountant had never mentioned it."

Maria T.
Owner, 2-location Italian restaurant, NJ
★★★★★

"Between the FICA credit and the new tips provision, we're saving over $40,000 a year. The quiz took 60 seconds and the analysis call took 20 minutes. Best ROI of my year."

James K.
GM, hotel restaurant group, NY
★★★★★

"I thought my CPA had everything covered. He didn't know the FICA credit applied to nail salons under the new law. We recovered $31,000 just from last year."

Linda P.
Owner, nail salon + spa, FL

Frequently Asked Questions

What is the "No Tax on Tips" provision?
The "No Tax on Tips" provision is part of the One Big Beautiful Bill Act (H.R.1, passed July 2025). It allows workers in qualifying tipped occupations to deduct their tip income from federal taxes. The IRS published the list of qualifying occupations in April 2026. Qualifying industries include restaurants, bars, hotels, salons, spas, and other hospitality businesses.
What is the FICA Tip Credit and how much can I recover?
The FICA Tip Credit (Section 45B) is a dollar-for-dollar federal tax credit that lets restaurant and hospitality employers recover 7.65% of FICA taxes they paid on employee tips above $5.15/hour. For a restaurant with 25 tipped employees, this is typically $25,000–$60,000 per year. For multi-location operators, it can exceed $250,000 annually.
Can I claim BOTH programs at the same time?
Yes. They operate at different tax levels. The "No Tax on Tips" provision is an employee-side deduction that reduces your employees' federal tax liability. The FICA Tip Credit is an employer-side credit that reduces YOUR business tax liability. Together, they represent the most powerful combined tax relief available to the restaurant industry. Almost no one is presenting both programs simultaneously — that's exactly what we do.
How far back can I recover missed FICA Tip Credits?
You can file amended returns to recover missed FICA Tip Credits for up to 3 prior tax years. For a restaurant that's never claimed it, this can represent $75,000–$250,000+ in recoverable credits depending on your size, tip volume, and payroll structure.
Does this apply to salons, spas, and hotels too?
Yes. The One Big Beautiful Bill Act (2025) expanded FICA Tip Credit eligibility to include beauty service businesses — barbershops, salons, nail spas, and similar businesses. Hotels, casinos, and other hospitality businesses with tipped employees were already eligible. The "No Tax on Tips" provision covers a broad set of qualifying tipped occupations published by the IRS in April 2026.
What does NextGen Web's analysis include?
Our free analysis covers: (1) FICA Tip Credit eligibility calculation based on your employee count, tip volume, and payroll structure; (2) "No Tax on Tips" qualification review for your business type; (3) 3-year retroactive recovery estimate; and (4) a step-by-step action plan your existing CPA can implement. There's no cost and no commitment — just a clear picture of what you're owed.

Stop Leaving Money on the Table.
Get Your Free Recovery Estimate Today.

The IRS "No Tax on Tips" list just dropped. The FICA Tip Credit has been sitting there since 1993. Most restaurant owners have never been told about both. We'll show you exactly what you're owed — in 20 minutes, at zero cost.

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✅ Free 20-min analysis  |  ✅ No commitment  |  ✅ No upfront cost  |  ✅ Works with your existing CPA