Tipped occupations / Transportation and delivery
TTOC 804
Goods delivery people
Drive a truck or other vehicle to deliver goods, such as food products, appliances, or furniture, or pick up or deliver packages. May also take orders or collect payment at point of delivery.
IRS illustrative examples, not a closed list: Pizza delivery driver, grocery delivery driver, floral delivery, bicycle courier, package delivery person, appliance delivery driver, furniture delivery person, app/platform-based delivery person. Related 2018 SOC: 53-3031.
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 goods delivery people deduct tips?
Goods delivery people is Treasury Tipped Occupation Code 804 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.