No tax on tips for travel guides
Yes, travel guides qualify. The occupation is on the Treasury list of jobs that customarily received tips before 2025 (Tipped Occupation Code 705, recreation and instruction). Qualified tips you earn in 2026 can be deducted, up to $25,000, on Schedule 1-A.
What counts as a tip for travel guides
Tips from players, travelers and students count when they are voluntary. Fees for the lesson, tour or round itself are not tips. Employees should report tips to their employer; self-employed guides and instructors report them on their business return.
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 705 on Schedule 1-A, Part II.
- Carry the deduction to Form 1040. You can claim it with the standard deduction.
Other recreation and instruction jobs on the list
Frequently asked questions
Do travel guides qualify for the no tax on tips deduction?
Yes. Travel guides are on the Treasury list of occupations that customarily and regularly received tips on or before December 31, 2024 (code 705), so qualified tips earned from 2025 through 2028 can be deducted, up to $25,000 a year.
How much tax would travel guides 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.