Posted on 05/22/2025 6:22:55 AM PDT by delta7
"I do" said nobody.
I thought you were taxed on a percentage of sales, and not on the actual tips.
Well, look at the bright side. All these places that automatically add a 20% gratuity to your credit card bill probably are going to stop.
How many people pay tips in cash? Tips are often added to the bill by the customer now. Those are certainly traceable.
Sadly, this may become a trap by the IRS.
Tip reporting is low. So, it goes up after this. IRS comes back with previous year’s audits.
Tips not taxed going forward are reported. Tips start becoming taxed. IRS audits why tip reporting drops.
What happened to the no tax on overtime??
So if a tip is on a credit card it’s not exempt?
I ALWAYS tip in cash. ALWAYS.
I believe servers prefer that so that it is not reported as tip income to the employer.
It isn’t always convenient.
If true, that is stupid and useless.
I always added the tip to my credit card receipt for convenience. Switching to cash now!
Everything has pros and cons.
My first thought was that the quality of service will definitely go up with untaxed tips.
There are some interesting dynamics with the cash only part.
Restaurants might offer a discount for cash, bypassing cc fees.
might move a lot of business to cash?
when the rats installed their $600 1099 nonsense, it reduced income. For example I did a tax return for a carpenter and always got good records from him. Afterwards, with the 1099, he only gave me the 1099’s he received, all the other income wasn’t reported. for those that don’t know, you only had to file a 1099 if you paid him as part of your business, pay for your personal house, no 1099.
stupid stupid stupid.
They’ve been cheating on their taxes for decades but I get the privilege of forking over their share from my paycheck. Double. The tip and their taxes. One of the hundred reasons we don’t eat out. Many aren’t eating out these days which is a good thing. Fine, let restaurants shut down if the owners can’t pay their employees and employees spitting in our food. When restaurants have signs stating if the people can’t pay 30% tips, don’t bother coming inside. Thank you for the advice, I won’t.
I’d rather save my $$$ and cook at home so I know the food’s quality. It didn’t get dropped on the floor in this kitchen. I know the utensils are clean. The dish is to our taste and it comes to the table hot. I know who touched it and their hands were washed. Can’t stand all the other customers’ screaming kids, arguments with their family and yammering on their phones.
What happened to the no tax on overtime??
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What happened to no tax on Social Security? Or no tax on overtime? Or an audit on Ft Knox? Ukie war over in two days? Just saying.
Salaried employees get screwed on the tips and they don’t get paid for overtime.
ANOTHER REASON THEY WANT TO END CASH, IMO
IN WOULD REFUSE TO SIGN A CREDIT CARD RECEIPT THAT INCLUDED ANY TIP.
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