You Make the Call - Sept. 25, 2025

Question: Bethany is a tattoo artist who regularly receives tips from clients in addition to set service charges. Under §70201 (“No Tax on Tips”) of the One Big Beautiful Bill Act (OBBBA), are these tips eligible for the deduction?

Answer: No. Bethany’s services fall under tattoo services, which are categorized as health services in many regulatory frameworks (state and local health departments classify them as body art/health services). These services are explicitly excluded from the occupations covered by §70201. Therefore, even though tattoo artists consistently receive tips like bartenders or hair stylists, their work is categorized as a health service, which is not eligible for the §70201 deduction.