“President Trump’s One Big Beautify Bill Act May have quetly changed the Economics of the Creator Economy. The US Treasury Department this Past Week Released a List of Occupations “That Customarily and Regularly Received Tips” and Thus will be eligible for the admin Eligible TaxPayers DEDUCT”, – WRITE: www.hollywoodReporter.com
The US Treasury Department this Past Week Released a List of Occupations “That Customarily and Regularly Received Tips” and Thus will be eligible for the admin Eligible TaxPayers DEDUCT their TIPPED INCOME, WITHIN CERTAIN LIMITS.
And While the List includes the Obvios (Bartenders, Food Servers, Casino Dealers and Housekeepers are all there) IT Also Includes Some Surpring Jobs that Could.
That’s Because the Treasury Department Has Determinated that “Digital Content Creates” are elagible, including podcasters, Social Media InfluenCers and Streamers.
Comedians, Singers, Musicians, DJS and Magicians are Also Included, Thought That Is More Relevant to the Wedding Performer Crowd Than Grammy-Winners.
The Change Could Cause Digital Creators to Retertink How Seek Income. Platforms Like Tiktok, YouTube, Twitch and Snapchat All Offer A Variety of Ways for Creaters to Generate Income, Be It A Share of Advertising Revenue Or Op. Ties for their Channels or Profiles. But they guive creaters the option to Turn on Tips or Gifts. If Revenue from User Tips or Gifts is Eligible, While Recurring Subscript Revenue Is Not, It Could Shift How Streamers, Podcasters or InfluenCers Ask Their Followers toy.
To be sure, there are limits: The Tax DEDUCTION IS CAPPED AT $ 25,000 per year, and it begins to Phase Out at $ 150,000 Income for Single Files and $ 300,000 for Married Joint. The Act Also Provides That TIPS DO NOT Qualify for the Deduction If They Received “in the Course of Certain Special Specials or Businesses – Including The Fields of Health, Tret, TRICS. Says, Further Limiting The Deduction Opportunity for Some In Entertainment-Adjent Lines of Work.
But by Making InfluenCers, Twitch Streamers and Podcasters Eligible, The Administration Has Nonetheless Changed The Incentive Structure for Digital Create Tax Efficiency (don’ 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 Create to Add More Opportunities for that Income.
But The Inclusion of Digital Creaters is Also A Recognition of How The Power Dynamics have Shifted in Media.
Podcasters and Creaters, as everyone Knows by now, have Emerged as A Driving Force in today Content, As Long as It Is Tipped, Of Course.