Treasury posts preliminary list of jobs eligible for no tax on tips

Treasury posted a preliminary list of occupations that customarily and regularly receive tips for purposes of the “no tax on tips” provision of H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act.

The official proposed list of such occupations will be part of forthcoming proposed regulations. The IRS anticipates that the official proposed list will be substantially the same as the preliminary list.

In addition to requiring that qualified tips must be received in an occupation that customarily and regularly received tips on or before Dec. 31, 2024, under the “no tax on tips” provision, tips do not qualify for the deduction if they are received in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics.

The provision in H.R. 1 allows workers in certain occupations to claim the deduction of up to $25,000 for qualified tips from tax year 2025 through tax year 2028.

The occupations on the list:

Beverage & Food Service

• Bartenders
• Wait staff
• Food servers, nonrestaurant
• Dining room and cafeteria attendants and bartender helpers
• Chefs and cooks
• Food preparation workers
• Fast-food and counter workers
• Dishwashers
• Host staff, restaurant, lounge, and coffee shop
• Bakers

Entertainment & Events

• Gambling dealers
• Gambling change persons and booth cashiers
• Gambling cage workers
• Gambling and sports book writers and runners
• Dancers
• Musicians and singers
• Disc jockeys, except radio
• Entertainers and performers
• Digital content creators
• Ushers, lobby attendants, and ticket takers
• Locker room, coatroom, and dressing room attendants

Hospitality & Guest Services

• Baggage porters and bellhops
• Concierges
• Hotel, motel, and resort desk clerks
• Maids and housekeeping cleaners

Home Services

• Home maintenance and repair workers
• Home landscaping and groundskeeping workers
• Home electricians
• Home plumbers
• Home heating and air conditioning mechanics and installers
• Home appliance installers and repairers
• Home cleaning service workers
• Locksmiths
• Roadside assistance workers

Personal Services

• Personal care and service workers
• Private event planners
• Private event and portrait photographers
• Private event videographers

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.