Federer defeated Alexander Zverev 7-6, 5-7, 6-1 in his second round-robin game at the ATP Finals in London on Tuesday (14 November) to achieve the feat.
The victory means Federer has taken his career earnings to $110,235,682 (£83,646,835) which passes 14-time major champion Woods' tally of $110,061,012 (£83,514,295).
The 36-year-old has had a career resurgence in 2017 as he returned from an injury lay-off to win the Australian Open in January — his first Grand Slam since 2012.
Federer followed it up with another six titles, including a record-breaking eighth Wimbledon crown as he currently stands at number two in the ATP tennis rankings and holds 95 career singles titles, 14 behind Jimmy Connors, who holds the record.
With up to $2m (£1.5m) on offer for the winner of the ATP Finals, Federer, who only recently overtook Novak Djokovic to reclaim his place as the top prize earner in tennis for the first time since June 2016, could have a commanding lead heading into 2018.
Woods, on the other hand, has seen his earnings stall after a series of injuries and controversies surrounding his personal life over the past few years.
The American, who has not won a major title since 2008, has not played golf since withdrawing from the Dubai Desert Classic in February due to a back injury.
However, he is set to make a competitive return to golf at the Hero World Challenge beginning on 30 November.