'No Tax On Tips' Includes Digital Creators, Too (hollywoodreporter.com)
- Reference: 0179170246
- News link: https://news.slashdot.org/story/25/09/11/2058247/no-tax-on-tips-includes-digital-creators-too
- Source link: https://www.hollywoodreporter.com/business/business-news/no-tax-on-tips-guidance-creators-trump-treasury-1236366513/
> The change could cause digital creators to rethink how they seek income. Platforms like TikTok, YouTube, Twitch and Snapchat all offer a variety of ways for creators to generate income, be it a share of advertising revenue or creator funding programs, or options to launch subscription tiers for their channels or profiles. But they also give creators the option to turn on tips or gifts. If revenue from user tips or gifts is eligible, while recurring subscription revenue is not, it could shift how streamers, podcasters or influencers ask their followers to support them.
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> To be sure, there are limitations: The tax deduction is capped at $25,000 per year, and it begins to phase out at $150,000 in income for single filers and $300,000 for married joint filers. The act also provides that tips do not qualify for the deduction if they are received "in the course of certain specified trades or businesses -- including the fields of health, performing arts, and athletics," Treasury says, further limiting the deduction opportunity for some in entertainment-adjacent lines of work.
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> But by making influencers, Twitch streamers and podcasters eligible, the administration has nonetheless changed the incentive structure for digital creators, and the ramifications could be felt across the creator economy in the name of tax efficiency (Don't be surprised if users are asked to like, subscribe, and tip). Platforms may also develop more ways to more prominently feature tips and gifts, pushing creators to add more opportunities for that income. But the inclusion of digital creators is also a recognition of how the power dynamics have shifted in media.
[1] https://www.hollywoodreporter.com/business/business-news/no-tax-on-tips-guidance-creators-trump-treasury-1236366513/
Inquiring minds want to know.. (Score:5, Funny)
Will this change my tax exposure when providing 'gratuities' to supreme court justices?
Re: (Score:1)
> Will this change my tax exposure when providing 'gratuities' to supreme court justices?
Only if the annual total exceeds $25000. Wait... Clarence Thomas? Is that you?
Was there ever a time when podcasters didn't ask for people to like, subscribe, and tip? I'm not sure this changes a whole lot as there's a cap on how much in tips a podcaster can report as tax free, doesn't apply to high income earners (so supreme court justices would not likely get their tips tax free), doesn't apply to recurring subscription fees, and not to work paid for that is tangential to the podcast. I take that to me
I predict everyone will want tips now (Score:3)
Pretty nice to get $25k tax-free every year, eh? I predict this will spread like weeds. Watch as lots of new jobs include tips in their compensation structures.
Believe me, I don't begrudge tipping people in service roles. They work hard for low wages, and deserve a boost. However, I have noticed that things are getting obnoxious. Many establishments already suggest tip amounts on the bill as percentages of the total including tax. Excuse me, but I don't tip the government.
And some of them brazenly suggest amounts that start well over 20% of the bill total. You'd have to be quite exceptional to deserve that amount on a regular basis.
I aim for 20% before tax, and rarely more.
Re: (Score:2)
Everyone already wanted tips. But if you're in a job where you get tips there's a good chance that you're not taking anything but your standard deduction. Unless you bought a house which of course you didn't because who the fuck fuck makes that kind of money and can buy a house.
This entire thing was always a scam to make it look like Trump was on the side of the working class while he is handing out trillions of taxpayer dollars to the 1,000 billionaires who run the show.
Oh and for what little you'r
Read the fine print (Score:2)
All of the tax on tip deductions or just that deductions and they cap out pretty quickly. They also sunset within a few years.
Because of course they did. Trump gave 4 trillion dollars to the 1% and to do that he had to do all sorts of nasty things. He certainly couldn't give serious tax cuts to working people when you're handing out 4 trillion to about 1,000 billionaires. The math just doesn't math.
Re: (Score:2)
> All of the tax on tip deductions or just that deductions and they cap out pretty quickly. They also sunset within a few years.
You're probably familiar with that delayed gratification experiment, right? That'd be the one where they took a classroom full of young kids and offered them the choice of a small bit of candy right now, or a bit more candy later if they could wait awhile. They then followed up with the kids as adults and the ones that chose to wait for the larger reward generally ended up being more successful.
Something tells me the typical sort of people who support Trump are only concerned with getting that little bit
So.... (Score:2)
Instead of making sure the "business" is paying a living wage to those (undoubtedly American) citizens who work in these occupations, the government is telling them "ask not your employer for a salary, but the customer of your employer for a tip"?
Is it also customary in the Trumpistan when you want to return a defective item you bought online to make a deal with the customer support service employee on the phone instead of the shop?
Republican Math. (Score:3)
ALSO, what streamer or youtuber isn't in the performing arts? Does the term 'digital creator' now apply to everyone who uses a computer to produce things...?
What kind of accidental bait and switch are they pulling on themselves here? Are there still people who think that DOGE cheques are in the mail...?
Re: (Score:1)
They don't want those "nasty people" performing in drag to catch a break. I was blown away recently by a performance of "Proud Mary" (Tina Turner version) and that performer EARNED my $5. I say let them keep it!
Re: (Score:2)
I'm sure they're telling themselves other people understand their weird little internal conversation. Or not even thinking about it and taking it for granted. As normal.
Somehow they still get surprised when forcing religion in schools ends up with someone else's religion being included.
Re: (Score:2)
Here in Florida our Republican leadership painted over a whole bunch of art that had absolutely nothing to do with LGBTQ+ stuff. Either they're totally fine with the collateral damage in order to erase LGBTQ+ representation, or they're really not much into art either. So, I'm inclined to believe the exception for performing artists is because they're taking the term "liberal arts", literally.
"Bunch of radical liberal beatniks, the whole lot of 'em!" - some Republican who worked on that bill, probably.
Does that include adult webcam entertainers? (Score:2)
Though I can't imagine anyone actually makes enough tip money on those "Wankurbate" type sites to actually have to report it on their taxes. Usually they're just sitting around looking super bored because no one is tipping (and in this economy, can you really blame 'em?).
Re: (Score:2)
Can you imagine the US Tax Office being like "yes, ma'am or sir... that qualifies as 'not performing arts' and also 'not athletics' as long as your heart rate stays below 120bpm at all times"?
are they really tips as they take an 30% cut and t (Score:2)
are they really tips as they take an 30% cut and that is not allowed in tip pay jobs.