The requirements
- Your job is on the list. The occupation has to appear on the IRS tipped occupations list (IRS.gov/TippedOccupations). About 70 jobs are on it.
- The tips are voluntary. The customer decided whether to tip and how much. Tips shared through a tip pool count too.
- The tips are reported on a W-2, a 1099, or by you on Form 4137.
- You have a Social Security number valid for work, and if both spouses earned tips, both need one.
- Married couples file jointly.
Jobs on the list
The list groups occupations into areas such as food and drink, entertainment and events, hospitality, home services, personal services, personal care and wellness, recreation and instruction, and transportation and delivery. It includes bartenders, servers, hosts, baristas and counter workers, casino dealers, musicians and DJs, hotel housekeepers, bellhops, concierges, barbers and hairstylists, nail technicians, massage therapists, valets, rideshare and taxi drivers, delivery drivers, movers and tour guides. Check the official list for your exact job.
Who doesn't qualify
- Tips that weren't voluntary, such as an automatic 18% service charge for large parties. That's wages.
- Unreported cash tips. If they're not reported, they can't be deducted.
- Specified service businesses. Self-employed people in fields like health, law, accounting, consulting, financial services, athletics and performing arts can't claim it, and neither can employees whose employer is in one of those fields.
- Married filing separately.
Self-employed and gig workers
Rideshare drivers, delivery drivers and other independent workers can claim tips reported on a 1099-NEC, 1099-MISC or 1099-K. The deduction can't exceed the net profit from that work, so it can't create a loss.
Updated November 3, 2026. Sources: Internal Revenue Code §224, IRS Notice 2025-69, IRS Fact Sheet 2025-03, 2025 Schedule 1-A (Form 1040).