No tax on tips for shoe and leather workers and repairers
Yes, shoe and leather workers and repairers qualify. The occupation is on the Treasury list of jobs that customarily received tips before 2025 (Tipped Occupation Code 611, personal appearance and wellness). Qualified tips you earn in 2026 can be deducted, up to $25,000, on Schedule 1-A.
What counts as a tip for shoe and leather workers and repairers
Tips paid by card at the salon and cash tips both qualify. Booth renters and independent stylists are self-employed: the deduction is limited to net profit from the business. A tip prompt that forces a tip above zero makes that amount a mandatory charge, not a tip.
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 611 on Schedule 1-A, Part II.
- Carry the deduction to Form 1040. You can claim it with the standard deduction.
Other personal appearance and wellness jobs on the list
Frequently asked questions
Do shoe and leather workers and repairers qualify for the no tax on tips deduction?
Yes. Shoe and leather workers and repairers are on the Treasury list of occupations that customarily and regularly received tips on or before December 31, 2024 (code 611), so qualified tips earned from 2025 through 2028 can be deducted, up to $25,000 a year.
How much tax would shoe and leather workers and repairers 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.