Occupations Qualifying for No-Tax-On-Tips Deduction
September 13, 2025
The One Big Beautiful Bill Act created a deduction of up to $25,000 for individuals receiving tips for 2025 through 2028 (income limits apply). The law charged the Treasury with compiling a list of occupations in which tips are customarily and regularly received so that those in such occupations could qualify for the deduction. A preliminary list has 68 occupations, including the usual bartenders, barbers, and food servers, as well as the not-so-usual gambling dealers, dancers and certain other entertainers, home electricians and plumbers, and pet caretakers and tutors. A final list is required to be published by October 2, 2025. #IdeaoftheDay
Daily tips on legal, tax, financial, and other matters to make you a smarter entrepreneur.
A new idea every day – check back tomorrow!
