WASHINGTON (AP) — The Treasury Department is moving closer to making President Donald Trump's “ no tax on tips ” promise a reality. But new guidance released Friday tends to limit the number of tipped workers who will be able to claim the benefit.
The agency on Friday submitted proposed regulations to the Federal Register that includes greater detail on the occupations covered by the rule and who will qualify and what counts as a “qualified tip.”
The “no tax on tips” provision in Republicans’ massive tax and spending law signed by Trump in July eliminates federal income taxes on tips for people working in jobs that have traditionally received them and allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. The deduction phases out for taxpayers with a modified adjusted gross income over $150,000.
To qualify as a tip, the tips must be must be earned in an occupation on Treasury's list of qualified occupations. Among the jobs exempted from tax on tips are sommeliers, cocktail waiters, pastry chefs, cake bakers, bingo workers, club dancers, DJs, clowns, podcasters, influencers, online video creators, ushers, maids, gardeners, electricians, house cleaners, tow truck drivers, wedding planners, personal care aides, tutors, au pairs, massage therapists, yoga instructors, skydiving pilots, ski instructors, parking garage attendants, delivery drivers and movers.
The tip must be voluntarily given, so mandatory tips or auto-gratuities would not qualify for the “no tax on tips” benefit. However, tip pools and similar arrangements qualify, so long as they are reported to the IRS and voluntary. The benefit is not available to married individuals who file their taxes separately.
The tip must be given in cash, check, debit card, gift card or any item exchangeable for a fixed amount of cash, unlike digital assets. And any amount received for illegal activity, prostitution services, or pornographic activity does not qualify as a tip, according to the Treasury Department.
The “no tax on tips” provision will be implemented retroactively to Jan. 1, 2025.
The Yale Budget Lab estimates that there were roughly 4 million workers in tipped occupations in 2023, which amounts to roughly 2.5% of all jobs.
Congressional budget analysts project the “No Tax on Tips” provision would increase the deficit by $40 billion through 2028. The nonpartisan Joint Committee on Taxation estimated in June that the tips deduction will cost $32 billion over 10 years.
FILE - A waiter delivers food to patrons at a restaurant, Jan. 21, 2022, in Miami Beach, Fla. (AP Photo/Marta Lavandier, File)
US Treasury Secretary Scott Bessent rides in a carriage during a procession through Windsor Castle on the occasion of President Donald Trump's visit, in Windsor, England, Wednesday, Sept. 17, 2025. (Toby Melville/Pool Photo via AP)
PHOENIX (AP) — When Turning Point USA's annual AmericaFest convention reached its halfway point, Erika Kirk tried to put a smiling face on things.
“Say what you want about AmFest, but it’s definitely not boring,” said Kirk, who has led the influential conservative organization since her husband Charlie was assassinated in September. “Feels like a Thanksgiving dinner where your family’s hashing out the family business.”
That's one way to put it.
Some of the biggest names in conservative media took turns torching each other on the main stage, spending more time targeting right-wing rivals than their left-wing opponents.
The feuds could ultimately define the boundaries of the Republican Party and determine the future of President Donald Trump's fractious coalition, which appears primed for more schisms in the months and years ahead.
Here are some of the most notable moments from the four-day conference.
Ben Shapiro, co-founder of the conservative media outlet Daily Wire, set the tone with the first speech after Erika Kirk opened the convention. He attacked fellow commentators in deeply personal terms, saying some of the right's most popular figures are morally bankrupt.
Candace Owens “has been vomiting all sorts of hideous and conspiratorial nonsense into the public square for years,” he said.
Megyn Kelly is “guilty of cowardice" because she's refused to condemn Owens for spreading unsubstantiated theories about Kirk's death.
And Tucker Carlson's decision to host antisemite Nick Fuentes on his podcast was “an act of moral imbecility.”
Barely an hour later, Carlson took the same stage and mocked Shapiro’s attempt to “deplatform and denounce” people who disagree with him.
“I watched it,” he said. “I laughed.”
Others had their chance the next night.
“Ben Shapiro is like a cancer, and that cancer spreads,” said Steve Bannon, a former Trump adviser.
Kelly belittled Shapiro as a marginal figure in the conservative movement and said their friendship is over.
“I resent that he thinks he’s in a position to decide who must say what, to whom, and when,” Kelly said.
Owens, who has spread unsubstantiated conspiracy theories about Charlie Kirk's death, wasn't welcome at the convention. But she responded on her podcast, calling Shapiro a “miserable imp."
Israel came up repeatedly during the conference.
Some on the right have questioned whether the Republican Party's historically steadfast support for Israel conflicts with Trump's “America First” platform. Carlson criticized civilian deaths in Gaza in remarks that wouldn't have been out of place in progressive circles.
Some attendees dug deep into history, highlighting Israel's attack on the USS Liberty off the Sinai Peninsula in 1967. Israel said it mistook the ship for an Egyptian vessel during the Six Day War, while critics have argued that it was a deliberate strike.
Bannon accused Shapiro, who is Jewish, and others who staunchly support Israel of being part of “the Israel first crowd.” Kelly said criticism from Shapiro and Bari Weiss, the newly installed head of CBS News, “is about Israel."
Erika Kirk pledged Turning Point’s support for Vice President JD Vance to be the next Republican presidential nominee.
“We are going to get my husband’s friend JD Vance elected for 48 in the most resounding way possible,” she said on the first night of the convention. Vance would be the 48th president if he takes office after Trump.
Turning Point is a major force on the right, with a massive volunteer network around the country that can be especially helpful in early primary states.
Vance was close with Charlie Kirk, whose backing helped enable his rapid political rise. The vice president is scheduled to close out the convention as the final speaker on Sunday.
The Make America Healthy Again movement had a big presence at Turning Point, signaling its quick rise in the right-wing ecosystem.
MAHA is spearheaded by Robert F. Kennedy, who leads the Department of Health and Human Services. However, there has been friction with other parts of the Make America Great Again coalition, particularly when it comes to rolling back environmental regulations.
Wellness influencer Alex Clark, whose podcast is sponsored by Turning Point, asked the crowd whether the Environmental Protection Agency is “with us or against us?”
“Big chemical, big ag and big food are trying to split MAGA from MAHA so things can go back to business as usual, but we don’t want that, do we?” Clark said.
Clark and others have asked for Trump to fire EPA Administrator Lee Zeldin, who responded by reaching out to MAHA activists. The EPA also said it would release a MAHA agenda for the agency.
The EPA did not immediately return a request for comment on Clark's speech.
Erika Kirk smiles at a question and answer session during Turning Point USA's AmericaFest 2025, Friday, Dec. 19, 2025, in Phoenix. (AP Photo/Jon Cherry)
Benny Johnson speaks during Turning Point USA's AmericaFest 2025, Saturday, Dec. 20, 2025, in Phoenix. (AP Photo/Ross D. Franklin)
Attendees sing and pray during Faith Night worship events at Turning Point USA's AmericaFest 2025, Saturday, Dec. 20, 2025, in Phoenix. (AP Photo/Jon Cherry)
Benny Johnson speaks during Turning Point USA's AmericaFest 2025, Saturday, Dec. 20, 2025, in Phoenix. (AP Photo/Ross D. Franklin)
Megyn Kelly, center, speaks during Turning Point USA's AmericaFest 2025, Friday, Dec. 19, 2025, in Phoenix. (AP Photo/Ross D. Franklin)
Ben Shapiro speaks during Turning Point USA's AmericaFest 2025, Thursday, Dec. 18, 2025, in Phoenix. (AP Photo/Jon Cherry)
Erika Kirk, center, speaks as Jack Posobiec, left, and Megyn Kelly look on during Turning Point USA's AmericaFest 2025, Friday, Dec. 19, 2025, in Phoenix. (AP Photo/Ross D. Franklin)
