'No Tax on Tips' apparently also applies to your favorite streamer
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 — up to $25,000 per year and it's phased out for single filers who make more than $150,000 per year — 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/youtube/no-tax-on-tips-apparently-also-applies-to-your-favorite-streamer-182932748.html?src=rss
Rating
Innovation
Pricing
Technology
Usability
We have discovered similar tools to what you are looking for. Check out our suggestions for similar AI tools.
Early Black Friday deals include the Google TV Streamer 4K for a record-low
<p>If you'd rather not spend the money on a brand new TV this year, you can make an old set feel new again with a streaming device. Our favorite streaming device is on sale right now ahe [...]