IRS Home Services (TTOC)
Do house cleaners qualify for the No Tax on Tips deduction?
Home cleaners — independent house cleaners, maid-service employees, and platform cleaners (Handy, TaskRabbit-style apps) — are on the IRS Treasury Tipped Occupation Code list. The §224 line runs exactly where you'd expect: the cleaning fee is your service price (business income or your employer's revenue), and the voluntary tip a client adds is qualified tip income. One caution for solo cleaners: household-employee arrangements paid via the client's Schedule H sit outside §224.
Short answer
Yes. Home cleaners are on the IRS TTOC list. Voluntary tips from clients — cash left on the counter, tips added in the app, holiday bonuses from regulars — qualify for the federal No Tax on Tips deduction, up to $25,000 per year. Cleaning fees are service revenue, not tips. 1099 cleaners are additionally capped at net self-employment income.
How much could you save?
Typical tip income for home cleaners.
Cleaning tip income depends on the model. Maid-service employees (W-2) typically report $1,500-$5,000/year in tips. Independent cleaners with steady residential clients report $3,000-$9,000 — regular clients tip more consistently and give December bonuses. Platform cleaners see in-app tips on 30-60% of jobs, commonly $2,000-$6,000/year.
For home cleaners specifically
What counts as a qualified tip — and what doesn't.
✓ Qualifies
- Cash tips left by the client ('the extra $20 on the counter')
- In-app tips on platform cleaning jobs (Handy and similar)
- Holiday tips and year-end bonuses from regular clients (the December envelope)
- Voluntary extra payment for a job well done, above the agreed price
✗ Does not qualify
- The cleaning fee itself (your service price — Schedule C income or employer revenue)
- Supply reimbursements or travel/parking reimbursements
- Platform bonuses and surge incentives (platform pay, not customer tips)
- 'Deep-clean surcharges' or add-on service fees you charge
- Wages paid by a client who treats you as a household employee via Schedule H — this arrangement is excluded from §224
A worked example
Paola, a real-world home cleaner.
Paola is a independent house cleaner with 22 regular clients, 1099, single filer, MAGI $41,000. For the tax year, she logged $6,800 in qualified tips ($4,300 through the year + $2,500 December holiday envelopes). She sits in the 12% federal marginal bracket.
- Deduction allowed: Full $6,800 deduction (net SE income of ~$39k supports it)
- Estimated savings: About $816 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 home cleaners
What other home cleaners ask.
A client rounds my $120 fee up to $140 every visit. Is the $20 a tip?
Yes, if it is voluntary — the client chose to pay more than your asking price. Log $20 per visit as tip income and $120 as service revenue. If you raised your price to $140, it is all service revenue; the distinction is who decided.
My December is full of holiday envelopes from regulars. Do those count?
Yes. Holiday cash from clients is a voluntary tip — often the biggest qualified-tip month of the year for cleaners. Log each envelope (date, client initial, amount) as received.
One family pays me through their payroll as a household employee. Does §224 apply there?
No. Household-employee wages (the client files Schedule H, you get a W-2 from the household) sit outside the §224 framework for that arrangement. Tips from your other, regular cleaning clients still qualify. If most of your income is household-employee wages, talk to a tax professional.
Handy shows a "tips" line on my earnings summary. Can I just use that number?
Use it as a cross-check, not a substitute. The platform's tip line is good evidence, but your own contemporaneous log — including any cash tips left at the home that never touched the app — is the §224 substantiation standard.
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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.