Influencers Set to Benefit from New Tax Credit

Influencers played a significant role in helping Donald Trump win the presidency, and now it seems they might be receiving some financial relief for their tax burdens.

Under Trump’s “No Tax on Tips” initiative, digital creators will have the option to request tax credits next year for certain revenues from tips, as confirmed by a Treasury spokesperson to Business Insider.

A draft from the Treasury outlines eligible roles, characterizing digital content creators as those producing “original entertainment” on various digital platforms, including live streams, short videos, and podcasts.

Among the mentioned examples are streamers, online video creators, and social media influencers. While many influencers primarily earn from advertising and brand partnerships, some creators on platforms like Twitch and OnlyFans have shifted towards subscription models.

Interestingly, what counts as a social media “tip” isn’t as clear-cut as, say, a tab at a bar. Different platforms have their own terms for tips: Twitch uses “bits,” TikTok has “gifts,” and YouTube features “Super Chat.” Tips are also prevalent on OnlyFans, where creators provide a “Tip Menu” for custom content or chats.

The “No Tax on Tips” promise was a key part of Trump’s economic agenda during the 2024 campaign and is included in the recently passed “Big Beautiful Building” legislation by Congress in July.

According to the new law, workers in qualifying roles receiving “regular and conventional” tips can claim deductions of up to $25,000. For those earning over $150,000 a year individually, or over $300,000 as a couple, the deductions will gradually phase out.

While top earners from platforms like Twitch or TikTok may not benefit, perhaps some well-known middle-class influencers will find this helpful.

Notably, this policy is immediate—qualified individuals can request deductions for tips received during the upcoming tax season. However, it’s important to note that this is a temporary measure, set to expire after 2028, although there may be opportunities for Congress to extend or make it permanent.

The legislation mandates that the Treasury publish a final list of eligible occupations within 90 days of the bill’s passage, with other included professions ranging from food service workers to dancers and musicians, as well as those in hospitality.