Tax free tips.

[Bill]

It’s income, their base pay is low with an expectation of tips. I was in technical sales with a low base and commissions- I paid taxes on all my commission earnings.

If paid in cash and the server chooses to put it in their pocket and not report it, at a risk for not declaring as income, it’s at their risk.

[WItoTX]

Should not be taxed. Also, our paychecks should not be taxed. We should get the full value of our paychecks, then be required to send a check in every month/quarter/year, whatever we decide.

Too many people blind as to how much the government steals from them. I really hope DOGE changes how we pay taxes.

Everyone in America would be 100% for cuts and stripping of the privileges federal employees enjoy by the second check they cut to the feds.

[CaptainDave]

It’s income, their base pay is low with an expectation of tips. I was in technical sales with a low base and commissions- I paid taxes on all my commission earnings.

If paid in cash and the server chooses to put it in their pocket and not report it, at a risk for not declaring as income, it’s at their risk.

X2 on the above. There are lots of people not in the service industry busting their butts 40 + hours per week that probably also would like a piece of their income to be considered non-taxable.

Bottom line, the Government has a spending problem. If no taxes on tips goes through, it's a guarantee that taxes will be raised in another area. Changing the allocation of who, what, when, pays taxes does not change the real problem.

[Strummer]

I’m a fan of the idea .

[GA Bowhunter]

What's your take on no tax on tips.

Stop with the giveaways. Everybody wants a hanout.

The people who work for tips need to pay taxes like everyone else. They already get a massive income tax break by not reporting all their tip income.

I would rather have a zero-tip culture.

[tpack]

OK... I`ve thought about this for a while. I think everyone should have skin in the game. No one gets to skate for free is what I always told the people who worked for me. 100% of tips should be reported and taxed using a hybrid tax table. The first 5000 of tips are taxed @ a very small %. Everything reported from 5K to 10K is a larger % and everything over 10K taxed like ordinary income. I also think that the young kids (21 and younger) and any elderly over 55 should not have to pay any taxes on any tips. It would encourage and help the younger kids who are willing to work and any American citizen still working for tips @ 55 years of age has done their share. Especially when our taxes are given so freely to other undeserving countries. At the end of the day, there are still going to be thousands that still pay 0% because there will always be those that report no tips regardless.

[Graysonhogs]

I wonder what % of cash tips actually get reported

Somewhere between 1-5%(just a guess). I report ALL of mine. Gotta do my part.