Home › Tipped occupations › Tow truck drivers and roadside assistance workers
Is no tax on tips available for tow truck drivers and roadside assistance workers?
Tow truck drivers and roadside assistance workers are on the official Treasury list of occupations that customarily and regularly received tips, under Treasury Tipped Occupation Code 409: Roadside assistance workers.
Being on the list is the first rule for the no tax on tips deduction. It does not settle it on its own. Whether the deduction may apply to you also depends on the tips themselves, your income, and a few other rules below.
| Official code (TTOC) | 409 |
|---|---|
| Official title | Roadside assistance workers |
| Category | Home services |
| What the job covers | Provide on-road assistance to drivers whose vehicles have broken down. |
| Examples on the list | Tow truck driver, car battery technician, tire repairer, tire changer, car fuel deliverer |
Quoted from the IRS list of occupations that received tips, from the final regulations (T.D. 10044).
Which tips count for tow truck drivers and roadside assistance workers
- Tips customers chose to give you, in cash or by card, check, gift card or payment app.
- Tips you got through a tip pool or tip sharing at work.
- Tips that show up on your W-2 or 1099, or that you report yourself on Form 4137.
What does not count
- Automatic service charges the customer cannot change or remove.
- Noncash tips, like tickets or goods.
- Tips earned in a specified service trade or business (such as health, law, accounting, consulting, performing arts, athletics or financial services), or for an employer in one of those fields.
Limits
- Up to $25,000 of qualified tips per return, per year, for 2025 through 2028.
- The deduction shrinks by $100 for each full $1,000 of modified AGI over $150,000 ($300,000 joint).
- Self-employed: no more than your net profit from that work.
- You need a Social Security number valid for work, and married couples must file jointly.
How tow truck drivers and roadside assistance workers claim it
Use Schedule 1-A, Part II, with your Form 1040. For 2026, your W-2 shows cash tips in box 12 (code TP) and occupation code 409 in box 14b if you are an employee. Keep your own tip records either way.
Common questions
Are tow truck drivers and roadside assistance workers eligible for no tax on tips?
Tow truck drivers and roadside assistance workers are on the Treasury list of occupations that customarily and regularly received tips, under code 409 (Roadside assistance workers). Being on the list is the first rule. The tips also have to be qualified tips, and income limits and other rules apply.
How much in tips can tow truck drivers and roadside assistance workers deduct?
Up to $25,000 of qualified tips per return, per year, for 2025 through 2028. The amount shrinks by $100 for each full $1,000 of modified AGI over $150,000 ($300,000 joint).
Do card and app tips count?
Yes, if the customer chose to give them. Qualified tips can be paid in cash, by check, credit or debit card, gift card, or a payment app. Automatic service charges do not count.
What is the Treasury Tipped Occupation Code for tow truck drivers and roadside assistance workers?
The code is 409. On 2026 Forms W-2, employers report the code in box 14b.