no tax on tips (2025-2028)
US creators may qualify for a tax deduction on support received through patronat under the "No Tax on Tips" law signed July 4, 2025.
who qualifies
You may qualify if you:
- are a US resident or citizen
- work in a qualifying occupation (see list below)
- earn less than $150,000/year total income ($300,000 for couples)
- receive support as voluntary tips (not contracted services)
qualifying occupations include
- digital content creators, podcasters, streamers, influencers
- musicians, dancers, performers
- writers, journalists
- artists, photographers
- fitness instructors, personal trainers
- and 60+ other occupations - see full IRS list
how it works
- deduct up to $25,000 in tips from your taxable income annually
- only federal income tax - payroll taxes (Social Security/Medicare) still apply
- temporary provision through December 31, 2028
- phases out if you earn over $150,000/year
example tax savings
- $50k income, $10k patronat support, 22% bracket: save ~$2,200
- $80k income, $15k patronat support, 22% bracket: save ~$3,300
- $100k income, $20k patronat support, 24% bracket: save ~$4,800
- $140k income, $25k patronat support, 24% bracket: save ~$6,000
These are estimates. Actual savings depend on your specific tax situation.
how to claim
Starting in 2026, Stripe will report your tips separately on your 1099-K form with your occupation. For 2025, the IRS is providing transition relief - consult a tax professional about how to claim the deduction on your return.
Support received through patronat qualifies as voluntary tips since:
- payments are voluntary, not for contracted services
- supporters choose the amount freely
- no specific deliverables are required
what patronat does
We classify all support payments as tips in our system:
- payment metadata includes tip classification
- stripe reports your income on Form 1099-K
- starting 2026, tips will be separately identified on 1099-K
- you claim the deduction when filing your tax return
You don't need to do anything special - just claim the deduction on your taxes.
important notes
- you are responsible for your own tax obligations
- this is new law with evolving IRS guidance
- consult a tax professional for advice specific to your situation
- keep records of all support received through patronat
- this deduction expires December 31, 2028 unless extended
questions?
This page provides general information only and is not tax advice. For specific guidance, consult a qualified tax professional. See our FAQ for more about how patronat works.