IRS Recreation & Instruction (TTOC)
Do golf caddies qualify for the No Tax on Tips deduction?
Golf caddies are on the IRS Treasury Tipped Occupation Code list and have been for decades — this is one of the trades §224 was written to protect. What is specific to this role is the payment structure: caddies almost universally work 1099 through the course or club, and 'caddy fees' or 'bag fees' the course charges are course revenue, not tips. Your qualified income is what the player voluntarily tipped you on top of the fee, and at private clubs, it is often delivered through a 'chip' or account-credit system.
Short answer
Yes. Golf caddies are on the IRS TTOC list. Voluntary tips from players — cash at the end of a loop, tip added to the club account, holiday tips from members — qualify for the federal No Tax on Tips deduction, up to $25,000 per year. Caddy fees and bag fees the course charges are business revenue, not tips. As 1099 workers, caddies are additionally capped at net self-employment income.
How much could you save?
Typical tip income for golf caddies.
Full-time caddies at private clubs and premium resorts typically report $12,000-$25,000 in annual tip income — often hitting the §224 cap in a busy season. Weekend-warrior caddies at daily-fee courses cluster around $3,000-$8,000. Master-caddy programs at destination resorts (Bandon, Pebble, etc.) can push $30,000+.
For golf caddies specifically
What counts as a qualified tip — and what doesn't.
✓ Qualifies
- Voluntary cash tips at the end of a loop (traditional)
- Voluntary tips added to a member/guest club account for caddies
- Voluntary holiday tips from member players (December cash from regulars)
- Voluntary tournament tips separate from the tournament caddy fee
✗ Does not qualify
- Caddy fees the course/club charges the player (business revenue, not yours to deduct)
- Bag fees, forecaddy fees, or double-bag fees baked into pricing
- Any 'gratuity included' amount on tournament caddy contracts
- Reimbursements for course fees or transportation
- 'Caddy master' program fees the club collects from you
A worked example
Trent, a real-world golf caddy.
Trent is a seasonal caddy at a private country club, 1099, single filer, MAGI $42,000. For the tax year, she logged $18,600 in qualified tips (loop tips + holiday envelopes from members). She sits in the 12% federal marginal bracket.
- Deduction allowed: Full $18,600 deduction (under $25k cap and MAGI threshold)
- Estimated savings: About $2,232 off federal income tax (SE tax still applies)
This is an illustrative example, not a guarantee. Your actual savings depend on your filing status, total income, state, and other deductions.
Questions specific to golf caddies
What other golf caddies ask.
The club charges the player $110 for the caddy fee. How much of that is my tip?
None of it — the caddy fee is course/club revenue. The player's tip is what they voluntarily added on top of the caddy fee (typically $40-80 for an 18-hole loop). Log only the voluntary tip amount, not the fee.
What about the annual holiday tip envelope from members?
Fully qualifying. Voluntary holiday tips from members — often the largest single-day income of the year for private-club caddies — count as §224 qualified tip income. Log each envelope as you receive it.
The club has a "chip" system where tips post to my account. Are those qualifying?
Yes, as long as the tips were voluntary at source (the player chose to tip and chose the amount). The club's chip/account system is just a payment mechanism — the tip qualifies the same as if it came in cash. Verify the chip amounts match a voluntary tip line on your caddy-master report.
I caddied part of the season and worked in the shop the rest. Do all tips count?
Caddying tips qualify because caddies are on the TTOC list. Pro-shop or bag-room tips depend on whether the specific role is TTOC-listed (many bag-room roles are considered support). Log your hours split by role so you can separate qualifying vs non-qualifying tips if audited.
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Track every shift
The deduction is real money — if you can prove your tips.
Qualified Tips logs each shift the moment it ends — timestamped, exportable, IRS-aligned.