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Treasury released early list for ‘no tax on tips’ deduction — but some jobs won’t qualify, experts say
The policy exempts up to $25,000 in annual tip income from taxes for eligible professions, including modern digital creators, potentially lowering effective tax rates and reshaping compensation models.
- On July 4, 2025, the One Big Beautiful Bill Act included digital content creators—podcasters, streamers, influencers—in its $25,000 tip deduction list, announced by the U.S. Treasury Department this past week.
- Lawmakers pitched the deduction as tax relief for service-oriented professions and included digital content creators, reflecting their rising role and political value in the 2024 campaign outreach to creators.
- The guidance groups jobs into eight broad categories, including digital content creation, but defining online tips and W-2 reporting could be complex and exclude informal payments.
- Observers note it could reshape behavior and strain budgets as the deduction phases out for single filers earning more than $150,000 and married joint filers above $300,000, with costs potentially exceeding initial estimates.
- The provision expires after 2028, and tax professionals urge creators to keep meticulous records and consult advisers about eligibility and reporting rules, PBS News reported.
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Trump’s 'no tax on tips' law applies to content creators
President Trump’s Big Beautiful Bill was passed in July, and part of that bill was the new "no tax on tips" law that would allow workers to earn tips and not have to declare them on taxes. The U.S. Treasury released a list of professions that were eligible for this law last week. Somewhat surprisingly, content creators of various types made the list. The list mostly includes the stuff you would expect, including bartenders, wait staff, food serv…
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Coverage Details
Total News Sources12
Leaning Left4Leaning Right1Center2Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 29%
14%
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