Parking and valet attendants are a listed tipped occupation, so reported tips deduct from federal taxable income up to $25,000 through 2028, with or without itemizing. Valet is one of the most tip-dependent jobs there is — much of a shift's earnings arrive as cash at the door — which puts reporting at the center of the deduction.
Most valets are W-2 employees of a parking company or venue, so the reported tips appear on the wage statement and deduct directly. Two wrinkles matter here. First, valet tips are usually pooled and split, and the pooled amount distributed to you (and reported) is what counts. Second, if you tip out to cashiers or a lead, only the tips you actually kept and reported are yours to deduct.
The deduction reduces federal income tax only, so it won't touch Social Security and Medicare, and it phases out well above a typical valet's income ($150,000 single). Because valet is cash-heavy and often worked by younger or part-year filers, 2025 claims were missed at high rates. A 1040-X recovers the refund.