IRS Has an Early Present for Santa Claus: Tax-Deductible Tips

Santa Claus impersonators are the latest beneficiary of Donald Trump’s new tax break for tips.

The Treasury Department and IRS clarified on Friday that celebrity and character impersonators — including holiday party Santas — can deduct up to $25,000 in tipped wages from their taxes.

Republicans established the tip deduction in last year’s sweeping tax law but left the task of defining which professions qualify for the tax break to Treasury. The department has taken an expansive approach with a a final rule released Friday listing more than 70 occupations that can claim the deduction.

In response to questions ...