President Donald Trump‘s “Big Beautiful Bill” includes at least one perk for the creator class. People who make their living on the internet will seemingly have a chance to claim new deductions as part of the “no tax on tips” stipulation included in Trump’s recently passed spending policy.
When the Big Beautiful Bill passed in July, most of the conversation surrounding the “no tax on tips” deduction focused on restaurant servers. After all, that’s the group Trump seemed to be targeting when he endorsed his update to the tax code during his 2024 presidential campaign.
A close reading of the fine print, however, revealed that servers will not be the only workers who will be able to claim new write-offs. “Digital content creators” are included in Axios‘ list of the professions that will qualify for the “no tax on tips” deduction.
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By taking advantage of that policy, creators will be able to claim a deduction that covers up to $25,000 of tip money. Since the deduction phases out for individuals making more than $150,000, the biggest earners on platforms like YouTube and TikTok may not see significant changes when Tax Day comes. For the lower and middle classes of the creator economy, however, the deduction may offer a significant boost.
The policy sounds good in theory, but it’s not totally clear how the “no tax on tips” deduction will apply to creators. The biggest question concerns the definition of a tip as it pertains to social media platforms. Is any direct payment from a fan to a creator considered to be a tip, no matter if it’s a Super Thanks on YouTube, a subscription fee on Patreon, or a paywall-unlocking transaction on OnlyFans? How much wiggle room is included in the Trump administration’s definition of creators? If claimants must “produce and publish on digital platforms original entertainment or personality-driven content, such as live streams, short-form videos, or podcasts,” where do creator-led companies fit in?
And as per usual, we must consider the TACO of it all. Trump promised to reward creators after they assisted his return to the Oval Office, but some of the proposed perks have yet to materialize. A deal to safeguard TikTok’s U.S. operations, for example, is still in limbo nearly 20 months into the current presidential term. Will the creator application of “no tax on tips” turn into another area in which Trump Always Chickens Out?
The “no tax on tips” deduction is a temporary policy that is set to expire in 2028, so this particular perk has a clear expiration date. Until then, creators can and should make the most of the write-off while it’s still available. It will be an option on this year’s tax forms when the public’s bills come due next April.
