Do We Tax Tips?

[mystery-ak]

December 27, 2024
Do We Tax Tips?
By Warren Beatty

To tax or not to tax tips is currently a hot topic. To tax tips or not sounds simple: yes or no. However, if we say 'yes,' several other issues arise, such as it's not clear how many of these workers will realize any economic benefit.

Michael Davis asks in the Hill: "If you tip the person who pours your coffee at Starbucks, why not tip the person who fills up your oil at the Quick Change place?" Davis is asking, "Where do we draw the line on tipping? Who do we tip and not tip?"

Davis also states that the entire tipping concept creates great animosity between workers like waitstaff and bartenders who are in front of customers and who actually receive the tips and the hostesses and kitchen staff who aren't in front of the customers at the moment the tips are handed out. These employees deserve a share of the tips as well. Davis is asking, "How do we make certain tips are fairly and adequately distributed?"

more
https://www.americanthinker.com/articles/2024/12/do_we_tax_tips.html

[berdie]

My brother works at a high-end restaurant and a portion of his tips go the hostess, food runner, bartender and bus boy.

I will say that tipping is getting out of hand. There are tip jars in nearly every establishment. Every where!! Having been in the service industry. I'm a good tipper. But some things seem out of place.

As far as I'm concerned...since most servers aren't paid minimum wage , tax whatever they are paid up to the minimum.

[libertybele]

My brother works at a high-end restaurant and a portion of his tips go the hostess, food runner, bartender and bus boy.

I will say that tipping is getting out of hand. There are tip jars in nearly every establishment. Every where!! Having been in the service industry. I'm a good tipper. But some things seem out of place.

As far as I'm concerned...since most servers aren't paid minimum wage , tax whatever they are paid up to the minimum.

Yes as a rule the server has to tip out the bartender, food runner, hostess and bus boy -- which really eats into their tips, but I susppose it's better than pooling on the tips and dividing it at the end of the night; therefore there's no incentive to offer good service. 

If the tips are in cash there is no way to really track the tips to tax it.  We generally try to leave a cash tip and for decent service we tip 20%...higher for really great service.

I was dumbfounded when I walked into a Wendy's instead of going through the drive through the other day and they expected a tip as I swiped my card.  I left 10% which I think is ridiculous for fast food.  Drive-through they didn't ask for a tip.  So how much more work is it to wait at the darn cash register and put the food on a tray or pack it up to go? ?

Never again will I tip on fast food.  Nope.  Notta. 

[Kamaji]

Tips are income, pure and simple, and should be subject to tax just like any other income. 

Geez.

[berdie]

Tips are income, pure and simple, and should be subject to tax just like any other income. 

Geez.

Yep. And so are the proceeds from a garage sale.

[libertybele]

Yep. And so are the proceeds from a garage sale.

Don't forget proceeds from a kiddie's lemonade stand, going door to door selling candy or teen car washes 

Heck no wonder they need 84,000 more IRS agents. 

[Smokin Joe]

Yep. And so are the proceeds from a garage sale.

And if we decide we like each other's lawnmowers better than our own and swap, that is income, too.