Trump signed off on the “no tax on tips” deduction as part of his “Big, Beautiful Bill” legislation on July 4th. But, while the provision had bipartisan support, experts say not all workers who make tips will end up qualifying.
In August, the U.S. Department of the Treasury released a preliminary list of the occupations that may be eligible. However, further guidance may be needed to determine who will actually qualify, as some jobs listed don’t meet the criteria laid out by the Trump administration.
Regularly tipped workers who received tips on or before Dec. 31, 2024 are eligible, according to the legislation. According to the bill, some tip workers will be able to deduct up to $25,000 of “qualified tips,” which means “voluntary cash or charged tips received from customers or through t