"No Tax on Tips" Includes Digital Creators, Too
21 hours ago
- #creator economy
- #tax policy
- #digital content
- President Trump’s One Big Beautiful Bill Act includes a 'no tax on tips' policy affecting the creator economy.
- The U.S. Treasury Department listed 'digital content creators' (e.g., podcasters, influencers, streamers) as eligible for tax deductions on tipped income.
- The policy may shift how creators seek income, favoring tips/gifts over subscriptions due to tax benefits.
- Limitations include a $25,000 annual deduction cap and phase-out thresholds ($150K single, $300K married).
- Entertainment-adjacent fields (health, performing arts, athletics) are excluded from the deduction.
- Platforms may promote tipping features, influencing creator revenue strategies.
- The inclusion of digital creators reflects their growing influence in media and politics.