Podcasters and Influencers Join Bartenders in Tax-Free Tip Era

Podcasters and social media influencers have been added to the U.S. Treasury Department’s preliminary list of occupations eligible for the "no tax on tips" provision under the Republican tax cuts and spending bill signed by President Donald Trump in July 2025. The provision is temporary, set to last from 2025 until 2028, and applies to individuals earning less than $160,000 annually. The move has drawn attention for including not just traditional tipped jobs but also unconventional ones such as podcasters, online video creators, and streamers [1].

The Treasury Department categorized the eligible occupations into eight sectors, including entertainment and events, beverage and food service, hospitality, personal services, and transportation and delivery. Other jobs on the list include bartenders, wait staff, gambling dealers, personal trainers, and even unconventional roles like skydiving pilots and yoga instructors [1]. This list was released as required by law within 90 days of the bill’s enactment.

The law excludes federal income taxes on tips but does not affect payroll taxes for Social Security and Medicare, nor does it negate state and local tax obligations. Only tips that are reported to employers and included on a worker’s W-2 form qualify for the deduction. This distinction is crucial, as it limits the tax relief to those who are already in the habit of reporting tips through formal channels [1].

The inclusion of digital content creators in the list reflects a broader interpretation of what constitutes tipped labor. While the U.S. Department of Labor has traditionally restricted the “customarily and regularly receives tips” designation to roles like servers and bartenders, the Treasury’s preliminary list challenges this by including occupations such as dishwashers and cooks [3]. This move raises questions about potential discrepancies between labor and tax policies and whether the Treasury’s interpretation could eventually influence the Department of Labor’s stance.

Analysts have noted that the provision’s impact may be modest in the short term, as most tipped workers already fall into lower income brackets. A report by the Yale Budget Lab indicates that over 37% of tipped workers earned incomes in 2022 that were low enough to face no federal income tax liability [1]. However, the report also warns that behavioral changes incentivized by the law—such as a shift toward tipped employment—could significantly amplify the bill’s overall cost.

According to budget projections, the “No Tax on Tips” provision could add $40 billion to the deficit by 2028, with the nonpartisan Joint Committee on Taxation estimating its cost at $32 billion over 10 years [1]. These figures highlight the potential long-term fiscal implications of the policy, particularly if it encourages a broader segment of the workforce to structure their income in ways that qualify for the deduction.

Public reaction to the tax law has been mixed. Polling data indicate that half of U.S. adults believe the law will primarily benefit the wealthy, while a majority think it will have a more harmful than helpful effect on low-income individuals [1]. Despite these concerns, the Trump administration maintains that the provision is an equitable measure aimed at supporting workers in industries that rely heavily on tips for supplemental income.

The Treasury Department plans to release an official proposed list of eligible occupations in the Federal Register, with a request for public comments. Employers and workers affected by the law are encouraged to stay informed and participate in the comment process as the policy moves forward [3].

Source:

[1] title1 (https://fortune.com/2025/09/04/podcasters-influencers-no-tax-tips-bartenders-golf-caddies-blackjack-dealers/)

[2] title2 (https://finance.yahoo.com/news/podcasters-influencers-unexpected-jobs-covered-165728689.html)

[3] title5 (https://www.littler.com/news-analysis/asap/treasury-department-releases-preliminary-list-no-tax-tips-occupations)