Big Tax Break Ahead: See If Your Job Qualifies for the New Tip Deduction!

The U.S. Treasury Dept. has released a draft list of occupations it proposes to be eligible for a federal tax break on tips. The list contains 68 jobs, broken into eight categories: 1) beverage/food service, 2) entertainment/events, 3) hospitality / guest services, 4) home services, 5) personal services, 6) personal appearance / wellness, 7) recreation/instruction and 8) transportation/delivery. Job titles include wait staff, hotel maids, musicians, babysitters, golf caddies, delivery people, rideshare drivers, plumbers, home movers and digital content creators. For 2025 through 2028, eligible taxpayers can deduct tips up to an annual maximum of $25,000, even if they don’t itemize.