Story perspectives

Trump's Tip Tax Promise Sparks IRS Clarification

12/2/2025

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Summary

Story summary

U.S. President Donald Trump promises no tax on tips, prompting the IRS to clarify tip definitions.
A 2024 tax cut creates a tip deduction for jobs that customarily receive them.
This includes digital content creators and entertainers, while tips for prostitution or pornographic activity are excluded.
The exclusion frustrates the adult entertainment industry, which already faces banking barriers.
In 2024, OnlyFans reported over 4.6 million creator accounts, illustrating significant demand.

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Story summary

U.S. President Donald Trump promises no tax on tips, prompting the IRS to clarify tip definitions.
A 2024 tax cut creates a tip deduction for jobs that customarily receive them.
This includes digital content creators and entertainers, while tips for prostitution or pornographic activity are excluded.
The exclusion frustrates the adult entertainment industry, which already faces banking barriers.
In 2024, OnlyFans reported over 4.6 million creator accounts, illustrating significant demand.