How tips are categorized
The tip is part of the underlying expense:
- Business meal tip: 50% deductible (same as the meal)
- Business travel tip: 100% deductible (hotel valet, bellhop, taxi, Uber)
- Service provider tip: Deductible if the service is a business expense (courier, cleaning service at your office)
Include the tip in the total expense. You don't need to track tips separately from the underlying charge.
Tips on personal expenses
Tips on personal expenses are personal. Tipping your hairdresser, restaurant server on a personal dinner, or your Uber to the airport for vacation are not deductible.
IRS Reference
Tips are treated as part of the expense they relate to. See IRS Publication 463 for travel and meal expense rules.
Tips are treated as part of the expense they relate to. See IRS Publication 463 for travel and meal expense rules.
Include tips in your expense tracking
When you log a business meal or travel expense in Hivebooks, include the tip in the total. It gets categorized and tracked automatically.
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