Feed: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
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Title: 'No Tax on Tips' apparently also applies to your favorite streamer

Date: Wed, 10 Sep 2025 18:29:33 +0000
Link: https://www.engadget.com/entertainment/youtub...

Streamers, YouTubers and other content creators are eligible for the new "No
Tax on Tips" policy in the One Big Beautiful Bill Act President Donald Trump
signed into law on July 4, 2024. "Digital Content Creators" are included in a
preliminary list of occupations that are eligible for the new tax deduction
on tips the US Treasury Department released last week. That means a podcaster
could receive the same tax relief as a waiter or bartender.

Under that guidance, the "Bits" received during a Twitch stream or the "Super
Thanks" a YouTuber receives for a great upload could go untaxed when next
year's tax season rolls around. As The Hollywood Reporter notes, though,
there are limits to how much of that tipped income will be deducted ΓÇö up to
$25,000 per year and it's phased out for single filers who make more than
$150,000 per year ΓÇö and language that suggests not every tipping scenario
content creators face might apply.

According to the Treasury, tips won't qualify for the deduction "if they are
received in the course of certain specified trades or businesses," which
includes "the fields of health, performing arts, and athletics." Does that
mean this is a much narrower carve out for content creators than it appears?
Possibly, but these classifications will need to be finalized before anyone
will be able to say for sure. Ultimately, content creators have multiple
possible sources of income: direct subscriptions, ad revenue, paid
partnerships, direct sales and digital tips. How much a new tax deduction
changes their calculus will vary.

Making tips tax deductible was one of several campaign promises Trump made
leading up to his reelection in November 2024. The idea was eventually folded
into the One Big Beautiful Bill, which is perhaps better known for the
catastrophic cuts it made to social welfare and clean energy spending. As it
turns out, the bill might also reshape the creator economy, too.

This article originally appeared on Engadget at
https://www.engadget.com/entertainment/youtub...
applies-to-your-favorite-streamer-182932748.html?src=rss

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