Overview

• “Digital Content Creators” — including podcasters, streamers and influencers — appear on Treasury’s draft list of occupations eligible for the tips deduction.
• Under the guidance, up to $25,000 in tipped income per year could be deducted, with phaseouts starting at $150,000 for single filers and $300,000 for joint filers.
• Treasury materials note exclusions for tips received in certain trades such as health, performing arts, and athletics, with further rules expected to address tips tied to illegal activity, prostitution, or pornography.
• Coverage highlights that tips and gifts on platforms like Twitch, YouTube, TikTok, and Snapchat may become more attractive than subscriptions or ad revenue if the draft rules are finalized.
• The expansion derives from the One Big Beautiful Bill signed July 4, 2024, and guidance cites platform features like Twitch Bits and YouTube Super Thanks as examples that may qualify.