No tax on tips for digital content creators
Yes, digital content creators qualify. The occupation is on the Treasury list of jobs that customarily received tips before 2025 (Tipped Occupation Code 209, entertainment and events). Qualified tips you earn in 2026 can be deducted, up to $25,000, on Schedule 1-A.
What counts as a tip for digital content creators
Voluntary payments from an audience count, including fan tips on streaming platforms reported on Form 1099-K. Subscriptions, ticket sales and fees you set are not tips. If you are self-employed, the deduction cannot exceed the net profit from that work.
How much could you save?
Federal income tax saved in 2026 for a single filer with $30,000 of other wages.
| Tips in 2026 | Tax saved | Deduction |
|---|---|---|
| $5,000 | $600 | $5,000 |
| $10,000 | $1,200 | $10,000 |
| $15,000 | $1,800 | $15,000 |
| $25,000 | $3,000 | $25,000 |
How to claim it
- Report every tip to your employer so it is included on your Form W-2, or file Form 4137 for unreported tips. If you are self-employed, make sure tips appear on your 1099 or business records.
- Enter your qualified tips and the occupation code 209 on Schedule 1-A, Part II.
- Carry the deduction to Form 1040. You can claim it with the standard deduction.
Other entertainment and events jobs on the list
Frequently asked questions
Do digital content creators qualify for the no tax on tips deduction?
Yes. Digital content creators are on the Treasury list of occupations that customarily and regularly received tips on or before December 31, 2024 (code 209), so qualified tips earned from 2025 through 2028 can be deducted, up to $25,000 a year.
How much tax would digital content creators save on $10,000 of tips?
About $1,200 in federal income tax for a single filer with $30,000 of other wages in 2026. Social Security and Medicare tax still apply to tips.
Do I need to be an employee to qualify?
No. Both employees and self-employed workers in a listed occupation can claim it. Self-employed workers cannot deduct more than the net profit from the business where the tips were earned.