More details on the "no tax on tips" new tax deduction

As a refresher, one of the new tax rules to come in to play for 2025, is a deduction of up to $25,000 on tip income.

I'm not going to get in to ALL the details of this new rule at this time, but I wanted to point out that a preliminary list of the occupations that qualify for this deduction has been issued fairly recently. The occupations listed are supposed to capture all that customarily receive tips. You can not start categorizing any pay as tips when it never has been categorized that way.

Here is the an overview of the list (each category provides several example for further clarification):

1. Bartenders, food servers, and related food and drink workers

2. Gambling dealers and related gambling establishment workers

3. Dancers, musicians, singers, DJs

4. Entertainers, performers, and digital content creators

5. Hotel and resort service workers

6. Home maintenance and repair

7. Roadside assistance

8. Personal care/aide and pet care

9. Event planners and workers

10. Personal appearance and wellness workers

11. Recreation and instruction workers

12. Hired transportation

13. Delivery and movers