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FICA tip credit for salons and spas

Varies

Can You Write Off FICA Tip Credit for Salons and Spas?

Short answer: Yes: starting in 2025, salons, barbershops, nail, and spa businesses can claim the FICA tip credit on employee tips.

Previously only food and beverage businesses qualified.

Records to keep: Keep receipts, 1099s and platform tax summaries, a mileage log, and a note of the business purpose.