Does My Job Qualify for the No Tax on Tips Deduction
The IRS published a final list of more than 70 occupations that qualify for the No Tax on Tips deduction. Here is a breakdown by category and how to check if your job is on the list.
Key takeaway: The IRS published a final list of more than 70 occupations with Treasury Tipped Occupation Codes. Instead of a tip tracker spreadsheet template or a Google Sheets tip tracker template, IRSTipTracker automatically stores every shift and generates IRS-compliant reports.
Frequently asked questions
Do bartenders and restaurant servers qualify?
Yes. Bartenders (TTOC 101) and waitstaff (TTOC 102) are explicitly listed in the IRS final regulations under the Beverage and Food Service category. A waitress tip tracker like IRSTipTracker helps servers and bartenders stay organized, rather than relying on a printable server tip tracker or a server tip tracker spreadsheet. Bussers, bar backs, and dining room attendants also qualify.
Do hair stylists, barbers, and nail technicians qualify?
Yes. Hair stylists and cosmetologists (TTOC 401), barbers (TTOC 402), and nail technicians (TTOC 403) are all listed under the Personal Appearance and Wellness category in the IRS final regulations.
Do rideshare and delivery drivers qualify?
Yes, if you receive tips through the platform. The IRS Transportation and Delivery category covers rideshare drivers, food delivery drivers, and other gig economy drivers. The tips must be reported on your Form 1099-K or other information return to qualify.
What if my job isn't on the tipped occupations list?
The IRS published a final list of more than 70 occupations with Treasury Tipped Occupation Codes (TTOCs) across eight categories. If your job is not on this list, the tips you receive do not qualify for the deduction. You can check the full list on the IRS website.
Do any jobs automatically disqualify me from the deduction?
Yes, if you work in a specified service trade or business (SSTB) such as health care, law, accounting, performing arts, consulting, athletics, or financial services, your tips do not qualify — even if customers tip you.