The 'No Tax on Tips' program was further defined by the Treasury Department, which listed those occupations "that customarily and regularly receive tips" - which will be eligible for the tax break.
The eligibility list may surprise you. It includes the obvious (bartenders, food servers, housekeepers, but also comedians, singers, podcasters, influencers, and DJs).
So, you don't need to be a genius to figure out that subscription fees for influencers, podcasters, etc., will quickly become tips; however, recurring subscription fees do not qualify.
There are other limitations as well. The deduction is capped at $25,000/per year for individuals. And phase out at $150,000 for a single person and $300,000 for married tax filers. Tips do not qualify for deduction if they are received "in the course of certain specific trades - including the fields of health care, performing arts, and athletics." Going forward, streaming platforms will prominently feature tip income.
The power dynamic has shifted in the media. Broadcast and cable media are now a distant second to online and streaming media. This trend will continue.
No comments:
Post a Comment