The Treasury Department has begun a list of occupations that qualify for the No Tax On Tips Regulations. Those job titles include, but are not limited to…
1 – Food & Beverage
Bartenders, Wait Staff, Servers, Chefs, and Cooks
2 – Entertainment
Gambling Dealers, Change Persons, Booth Cashiers, Dancers, Musicians, Singers, Entertainers, and Other Performers
3 – Personal Services
Personal Care Workers, Private Event Planners, Photographers, Videographers, Event Officiants, Pet Caretakers, Tutors, Nannies, and Babysitters
4 – Personal Appearance & Wellness
Skincare Specialists, Massage Therapists, Barbers, Hairdressers, Cosmetologists, Manicurists, Exercise Trainers, and Group Fitness Instructors
5 – Recreation
Golf Caddies, and Tour & Travel Guides
There are many more, but I’m sure that you get the gist.
Let me leave you with this…
I’ve had a couple of questions on this, so here’s my point.
Let’s say that I wanted to get creative in saving money on my taxes and that my salary was normally $100K per year. Since the the no tax limit on tips limit in 2025 is $25K, can I drop my salary to $75K and say that the other $25K is tips?
If that were legal then I would still pay Social Security and Medicare on $100K and would save income tax on $25K if my Adjusted Gross Income still qualified. But since accountants aren’t eligible for the tip credit, I can’t partake.
I’ve always thought that accountants should be tipped, but for whatever reason, I guess I’m not as entertaining as I’d like to be.
My point is that this tax benefit isn’t available to most workers. If you aren’t inside one of the allowed categories, I guess your SOL with the rest of us.
Either that or grab a tutu and learn ballet…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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