Mandel NGAN / AFP
Influencers helped President Donald Trump win the presidency. Now, they’re getting a reward on their tax bills.
As part of Trump’s “no tax on tips” policy, digital content creators will be able to claim a tax deduction next year on the portion of their income that comes from tips, a Treasury spokesperson confirmed to Business Insider.
In a draft list of qualifying occupations provided to BI and first reported by Axios, the Treasury describes digital content creators as people who “produce and publish on digital platforms original entertainment or personality-driven content, such as live streams, short-form videos, or podcasts.”
They list streamers, online video creators, social media influencers, and podcasters as examples.
Many influencers derive the bulk of their earnings from advertising or brand deals. However, some, including Twitch streamers and OnlyFans creators, lean toward subscriptions and tips.
What constitutes a “tip” on social media may be less concrete than on a bar tab or restaurant check. Most social-media platforms offer some form of tipping under various names. On Twitch, they’re referred to as “bits.” On TikTok, they’re called “gifts,” and on YouTube, they’re “Super Chats.” Tipping is common on OnlyFans, where creators offer “tip menus” for viewers to pay for custom content or video chatting.
“No tax on tips” was one of Trump’s key economic campaign pledges during the 2024 campaign, and was one of several key changes to the tax code included in the “Big Beautiful Bill” that Congress passed in July.
Under the new law, workers in occupations that “customarily and regularly” receive tips will be eligible to claim a deduction for those tips up to $25,000. That deduction gradually phases out for individuals making more than $150,000 a year, or a married couple making $300,000 a year.
Top earners on Twitch or TikTok who bring in millions annually won’t qualify, but the less-famous middle class of influencers likely will.
Unlike some other parts of the bill, this one takes effect quickly: Workers who qualify will be able to claim the deduction on tips they’ve received this year when they do their taxes early next year.
The policy is temporary and set to expire after 2028, though Congress could decide to extend it or make it permanent down the road.
The law requires that the Treasury Department publish a final list of the occupations that are eligible for the deduction within 90 days of the bill’s passage.
Other occupations included in the draft list were beverage and food service workers, dancers and musicians, and hospitality workers.
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