President Donald Trump announced a new tax policy during an event in Las Vegas, titled "no tax on tips," which aims to allow certain workers, including digital content creators, to deduct tip income from their taxable earnings. This policy is part of Trump's broader economic initiative, referred to as the "Big Beautiful Bill," which was approved by Congress in July.
Under this measure, creators of digital content such as Twitch streamers, OnlyFans users, and podcasters will be able to deduct up to $25,000 of tip income when filing their taxes for the upcoming year. This deduction is particularly relevant for influencers who rely on tips and subscriptions rather than traditional advertising revenue. The Treasury Department has identified various qualifying occupations that "customarily and regularly" receive tips, and digital content creators are included in this list.
While higher-income influencers generating significant earnings from platforms like Twitch or TikTok may not benefit from this deduction—given the income phase-out threshold of $150,000 for individuals and $300,000 for couples—the middle-tier influencers who earn less are likely to gain from this initiative. Tipping practices on social media vary, with terms like "bits," "gifts," and "Super Chats" representing tips across different platforms.
This tax deduction is set to be temporary, expiring in 2028, although there is potential for Congress to extend or make it permanent in the future. The policy is positioned as a way to support workers in various sectors, including service and entertainment, as they navigate their tax responsibilities moving forward.