Tax deductions for cash workers
Costumes. Mileage. Supplies. Phone. House fees. Most cash workers spend thousands every year on the things that make their job possible — and most of it is potentially deductible. The catch: deductions only count if you have the records. Fetti captures them as you go, so the receipts are ready when tax time arrives.
What you might be missing
A few of the categories Fetti is built to track. Not exhaustive — anything that's an ordinary and necessary business expense can be deductible; talk to a CPA for what applies to your situation.
No Tax on Tips · 2025–2028
The One Big Beautiful Bill (OBBBA, signed July 4, 2025) created a federal income-tax deduction for qualified tip income, capped at $25,000 per year, available for tax years 2025 through 2028. If you're a tipped worker in a covered occupation, you may be able to deduct up to $25,000 of your tips on your federal return.
Annual cap
$25,000
of qualified tip income
Years it applies
2025–2028
4 tax years total
Phase-out begins
$150k
MAGI for single filers
The IRS published the list of qualifying occupations in its 2026 final regulations. Around 70 occupations are covered, including:
The deduction phases out for higher-income filers. Above the phase-out window, the deduction is zero.
Fetti's tax engine applies the phase-out automatically based on your filing status and reported income.
Estimates only. The IRS final regulations and any state conformity (most states have not yet adopted NTOT) govern actual eligibility. Consult a licensed tax professional for your specific situation.
How Fetti helps
Snap a photo. Fetti reads the amount, vendor, and date and drops the expense into the right category.
Categories match how you actually earn — dancer presets include costumes and house fees; driver presets include mileage and platform fees.
One-page PDF income + expense summary your CPA can read at a glance. Schedule C lines auto-mapped where applicable.
For most expenses under $75, the IRS accepts a contemporaneous log (date, amount, vendor, business purpose). Above $75, keep the receipt. Fetti's receipt scanner makes saving them painless — and the photo lives with the expense, not in a shoebox.
IRS framing under IRC §162: an expense is 'ordinary' if it's common in your line of work and 'necessary' if it's helpful and appropriate. Costumes you only wear to work, the heels you wear on stage, mileage to your second venue — all ordinary and necessary. The new sneakers you also wear to brunch — not.
The Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for unreimbursed employee expenses through 2025 for most W-2 workers. If you're 1099 or self-employed, your business expenses go on Schedule C and reduce both income tax and SE tax. Talk to a CPA about your specific situation.
Reconstruct what you can from credit-card and bank statements — the IRS allows that for ordinary recurring expenses. Going forward, the receipt scanner means you don't have to.
No — Fetti is the records-keeping layer. We export a tax-ready PDF + CSV that your CPA, TurboTax, or H&R Block can use. We don't file.
Educational content only — not tax or legal advice. Eligibility for any deduction depends on your specific facts, occupation, employment classification (W-2 vs. 1099), filing status, and state of residence. Consult a licensed CPA or tax professional for advice on your situation. Fetti makes no representation that any specific deduction will apply to you or that any specific amount will be saved.
Free forever for shift + expense logging. No card required.
Get started free