The IRS starts filling in the blanks for which jobs qualify for no tax on tips

The Internal Revenue Service on Friday listed 70 jobs that could qualify for the Trump administration's no tax on tips policy approved by Congress over the summer.

The roster of qualifying jobs include traditional tipped occupations like bartenders, waiters, cab drivers, servers, plumbers, and more. In addition, digital content creators such as podcasters, streamers, and social media influencers could receive the tax break as well.

For qualifying workers, the first $25,000 in tipped income can be deducted from next year's tax bill. The Treasury Department must undergo a notice and comment period before finalizing the rules around eliminating the taxation of some tips. A public hearing is scheduled for Oct. 23.

Many other positions didn't make the cut for the new tax break, at least for now. Certain positions in fields like health, law, athletics, financial services, and the performing arts will not qualify for the tax break under current rules. For example, actors, singers, musicians, and directors cannot deduct tipped income from their taxes. Nevada Democrats including Sen. Jacky Rosen are lobbying the Treasury Department to fold in professional entertainers into the tax break.

Tip deductions won't be allowed for activities that violate the law. The IRS listed exotic pet smuggling, human trafficking, drug dealing, and counterfeiting as examples. Pornographic activity won't fall under the no tax on tips policy either, per the IRS.

Under the new law, individuals earning up to $150,000 can deduct their first $25,000 in tips from their annual taxes. Payments at the discretion of the customer and given voluntarily to a worker count as a tip. Workers, however, will still owe payroll taxes on their tipped pay. GOP lawmakers set the temporary provision to expire near the end of Trump’s term in December 2028.