On September 2, 2025, the U.S. Department of Treasury released a “preliminary list” of jobs that may be entitled to claim a tax deduction for certain wages. This preliminary list includes 68 occupations that “customarily and regularly received tips” on or before December 31, 2024 and thereby qualify for the tax deduction for tips. Additionally, the IRS recently provided a draft Form W-2 for 2026 that reflects changes required by recent legislation.
One Big Beautiful Bill Act and the No Tax on Tips Provision
As a reminder, on July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). Among many other provisions, this legislation provides a federal tax deduction for certain income received from tips. Specifically, employees may be entitled to a tax deduction for up to $25,000 of wages received in tips during a year. Individuals must make less than $150,000 (or $300,000 if filing jointly) in wages to qualify for this tax deduction. This salary threshold will adjust for inflation in future years.
Preliminary List of Qualifying Occupations
Additionally, to qualify for the deduction, the tips must be received by someone working a job that “customarily and regularly received tips” on or before December 31, 2024. The OBBBA requires the Department of Treasury to provide an official list of qualifying occupations by October 2, 2025. In the meantime, on September 2, 2025, the Treasury Department provided “preliminary list” of “occupations that customarily and regularly received tips on or before December 31, 2024.” This preliminary list also provides codes for tax reporting purposes. Although this “preliminary list” is not final, the Treasury Department and IRS “anticipate that the official proposed list will be substantially the same as this preliminary list.”
The Treasury Department’s preliminary list includes:
1. Beverage and Food Service
- Bartenders
- Wait Staff
- Food Servers (non-restaurant)
- Dining Room and Cafeteria Attendants and Bartender Helpers
- Chefs and Cooks
- Food Preparation Workers
- Fast Food and Counter Workers
- Dishwashers
- Host Staff, Restaurant, Lounge, and Coffee Shop
- Bakers
2. Entertainment and Events
- Gambling Dealers
- Gambling Change Persons and Booth Cashiers
- Gambling Cage Workers
- Gambling and Sports Book Writers and Runners
- Dancers
- Musicians and Singers
- Disc Jockeys (except radio)
- Entertainers and Performers
- Digital Content Creators
- Ushers, Lobby Attendants, and Ticket Takers
- Locker Room, Coatroom, and Dressing Room Attendants
3. Hospitality And Guest Services
- Baggage Porters and Bellhops
- Concierges
- Hotel, Motel, and Resort Desk Clerks
- Maids and Housekeeping Cleaners
4. Home Services
- Home Maintenance and Repair Workers
- Home Landscaping and Groundskeeping Workers
- Home Electricians
- Home Plumbers
- Home Heating/Air Conditioning Mechanics and Installers
- Home Appliance Installers and Repairers
- Home Cleaning Service Workers
- Locksmiths
- Roadside Assistance Workers
5. Personal Services
- Personal Care and Service Workers
- Private Event Planners
- Private Event and Portrait Photographers
- Private Event Videographers
- Event Officiants
- Pet Caretakers
- Tutors
- Nannies and Babysitters
6. Personal Appearance and Wellness
- Skincare Specialists
- Massage Therapists
- Barbers, Hairdressers, Hairstylists, and Cosmetologists
- Shampooers
- Manicurists and Pedicurists
- Eyebrow Threading and Waxing Technicians
- Makeup Artists
- Exercise Trainers and Group Fitness Instructors
- Tattoo Artists and Piercers
- Tailors
- Shoe and Leather Workers and Repairers
7. Recreation and Instruction
- Golf Caddies
- Self-Enrichment Teachers
- Recreational and Tour Pilots
- Tour Guides and Escorts
- Travel Guides
- Sports and Recreation Instructors
8. Transportation and Delivery
- Parking and Valet Attendants
- Taxi and Rideshare Drivers and Chauffeurs
- Shuttle Drivers
- Goods Delivery People
- Personal Vehicle and Equipment Cleaners
- Private and Charter Bus Drivers
- Water Taxi Operators and Charter Boat Workers
- Rickshaw, Pedicab, and Carriage Drivers
- Home Movers
Interestingly, this list includes some occupations that the Department of Labor has not traditionally considered as jobs that “customarily and regularly” receive tips, such as cooks, dishwashers, electricians, and plumbers.
New Form W-2 for 2026
Also, on August 15, 2025, the IRS released a draft Form W-2 for 2026, reflecting changes required by the OBBBA. The draft introduces a new Box 14b for the “Treasury tipped occupation code.” It also adds a new reporting option in Box 12 for employees to list “TP” — the total amount of qualified tips eligible for deduction. These reporting requirements will render familiarity with the OBBBA’s specific provisions essential for employers in the coming years.
What’s Next?
The Treasury Department’s preliminary list and the IRS’s draft Form W-2 represent important preliminary steps in implementing the OBBBA’s “No Tax on Tips” provision. While final lists and Forms are forthcoming, employers and employees alike should review these interim steps to better understand their new obligations and potential benefits under the OBBBA. Our Maynard Nexsen team stands ready to assist with any questions you might have. Please contact us for additional information or guidance.
