"Golf caddies, blackjack dealers and house painters are among the jobs covered under the Trump administration's preliminary list of occupations not required to pay income tax on their tips under Republicans' new tax cuts and spending bill. A bit more unexpected? Podcasters and social media influencers will also be excluded from forking over a portion of their tips, according to the list released Tuesday by the Treasury Department."
"The provision in the law signed by President Donald Trump in July eliminates federal income taxes on tips for people working in jobs that have traditionally received them. It's temporary and runs from 2025 until 2028. It applies to people who make less than $160,000 in 2025. The Yale Budget Lab estimates that there were roughly 4 million workers in tipped occupations in 2023, which amounts to roughly 2.5% of all jobs."
Tipped occupations such as golf caddies, blackjack dealers, house painters, podcasters and social media influencers are listed as exempt from federal income tax on tips under the new law. The exemption applies from 2025 through 2028 and covers workers earning less than $160,000 in 2025. The administration published a preliminary list of qualifying occupations, organized into eight categories including beverage and food service, entertainment and events, hospitality, home services, personal services, personal appearance and wellness, recreation and instruction, and transportation and delivery. The Yale Budget Lab estimated roughly 4 million workers were in tipped occupations in 2023, about 2.5% of all jobs. A Budget Lab report found the law's effects would be small since many tipped workers have low incomes.
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