The Treasury Department’s list of 68 jobs that are eligible for tax exemptions on tips has leaked to the media and includes occupations ranging from bartenders and food servers to entertainers, performers and digital content creators.
The proposed list, as first reported by Axios, includes:
1. Beverage & food service
BartendersWait staffFood servers, non-restaurantDining room and cafeteria attendants and bartender helpersChefs and cooksFood preparation workersFast Food and Counter WorkersDishwashersHost staff, restaurant, lounge, and coffee shopBakers
2. Entertainment and events
Gambling dealersGambling change persons and booth cashiersGambling cage workersGambling and sports book writers and runnersDancersMusicians and singersDisc jockeys (except radio)Entertainers and performersDigital content creatorsUshers, lobby attendants and ticket takersLocker room, coatroom and dressing room attendants
3. Hospitality and guest services
Baggage porters and bellhopsConciergesHotel, motel and resort desk clerksMaids and housekeeping cleaners
4. Home services
Home maintenance and repair workersHome landscaping and groundskeeping workersHome electriciansHome plumbersHome heating/air conditioning mechanics and installersHome appliance installers and repairersHome cleaning service workersLocksmithsRoadside assistance workers
5. Personal services
Personal care and service workersPrivate event plannersPrivate event and portrait photographersPrivate event videographersEvent officiantsPet caretakersTutorsNannies and babysitters
6. Personal appearance and wellness
Skincare specialistsMassage therapistsBarbers, hairdressers, hairstylists and cosmetologistsShampooersManicurists and pedicuristsEyebrow threading and waxing techniciansMakeup artistsExercise trainers and group fitness instructorsTattoo artists and piercersTailorsShoe and leather workers and repairers
7. Recreation and instruction
Golf caddiesSelf-enrichment teachersRecreational and tour pilotsTour guides and escortsTravel guidesSports and recreation instructors
8. Transportation and delivery
Parking and valet attendantsTaxi and rideshare drivers and chauffeursShuttle driversGoods delivery peoplePersonal vehicle and equipment cleanersPrivate and charter bus driversWater taxi operators and charter boat workersRickshaw, pedicab, and carriage driversHome movers
The tax deduction on tips is effective for 2025 through 2028, allowing both employees and self-employed individuals to deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before Dec. 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137, according to an IRS fact sheet. The IRS is required to publish a list of occupations by Oct. 2, 2025, that “customarily and regularly” received tips on or before Dec. 31, 2024. “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing. The maximum annual deduction is $25,000. For the self-employed, the deduction can’t exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned. The deduction phases out for taxpayers with modified adjusted gross income over $150,000 (or $300,000 for joint filers).
