Tipped occupations / Home services
TTOC 401
Home maintenance and repair workers
Perform work to keep machines, mechanical equipment, or building structure in repair; may maintain furniture or antiques.
IRS illustrative examples, not a closed list: Handyman, roofer, window repairer, house painter, flooring installer, piano tuner, furniture restorer, antique repairer. Related 2018 SOC: 49-9071, 49-9098, 49-9099, 49-9063, 49-2097, 51-7021.
Tips in this occupation can be qualified tips only if the other rules in section 224 and Treas. Reg. § 1.224-1 are met. The occupation list was transcribed from the IRS table on October 14, 2026. The IRS page itself was last reviewed June 28, 2026.
Same category
If the same paycheck also has FLSA overtime, use the overtime calculator. Qualified overtime does not include qualified tips.
Questions
Can a home maintenance and repair workers deduct tips?
Home maintenance and repair workers is Treasury Tipped Occupation Code 401 on the IRS list of occupations that customarily and regularly received tips on or before December 31, 2024. Being on the list is required. The tips still have to be qualified tips: voluntary cash tips, properly reported, and not received in a specified service trade or business.
What payments are not qualified tips?
Service charges, automatic gratuities, and other mandatory amounts are not qualified tips, even if they are later paid to workers. A voluntary amount above a mandatory charge can be a qualified tip if the other rules are met. Tips are not qualified if the service is a felony or misdemeanor, or if the amount is prostitution or pornographic activity.
What is the dollar limit?
Section 224 caps the deduction at $25,000 per return for tax years 2025 through 2028, then reduces it by $100 for each $1,000 of MAGI over $150,000 ($300,000 on a joint return). Married taxpayers must file jointly. Self-employed tips cannot exceed net income from that business.