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Has the tax on tips been abolished yet ?

Stealers Wheel said:
Yes, there are revenue implications. Nowever, in the spirit of equity, since a tip is not deductible for the giver then they ought not be taxable to yhe recipient.
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That’s an interesting way to look at it, but how far should that ‘equity’ rule be taken?

If I start a small business (e.g. mowing lawns, painting houses or washing cars), thus becoming self-employed, then my customers (for the most part) aren’t reporting my fees (personal income) as a tax deductible expense (to the IRS). Should I be able to operate that business without (federal income) taxation of (that unreported to IRS by my customers portion of) my self-employment income?
 
No tax on tips, social security, overtime, and for the blue states an elimination of the salt deduction cap will part of the 2017 tax bill renewal. It will be democrats throwing up roadblocks.
 
What, exactly, has he done for the country?
 
iamwhatiseem said:

Everyone understood what I meant by the common term for lower wage service jobs.

But you be you
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Your failure to express your thoughts clearly isn’t my issue.

Still, among service industry employees that traditionally receive tips, the amount varies widely dependent on a variety of factors, refuting your broad brush claim.
 
Helix said:
I'd rather see minimum wage apply to tipped work. The $2.13 shit is ridiculous.
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Another silly, feel good idea.
My daughter and my son worked as servers during the summers while in college, and one or two evenings a week during school year.
They earned enough money during those three months, and a couple days a week to pay all of their bills for the year.
I remember both of them, including tips, average between $20 - $25/hr. This was in the early 2010s.
There is no other entry level service job they could work so few hours and earn this much.
My wife and I, one place we go to here couple times a month... our server is usually the same gal, we usually go on Thursday evening. She only worked Thursday, Friday and Saturday. She earns more than her full time husband does working full time. We have known her for almost 10 years.
Servers make good money considering the level of employment they are in.
To me, it is ridiculous and unfair that they would not have to pay taxes on 3/4 their earnings. Makes ZERO sense.
 
Great story, but it's not a silly idea to prevent owners from paying low 1991 wages in 20 ****ing 25.. However, you "populists" give zero shits about that, and if you actually do, then wow, did you ever screw up with your vote.
 
Willing to bet the $1.25/doz eggs and $1.85/gal gas I bought this morning that the monied elitists will see tax relief before waitresses do.
 
Helix said:
Great story, but it's not a silly idea to prevent owners from paying low 1991 wages in 20 ****ing 25.. However, you "populists" give zero shits about that, and if you actually do, then wow, did you ever screw up with your vote.
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Not silly at all. It has been a long standing practice for generations.
In some cities, service staff actually PAY the owner to work there because they earn so much tips.
And the $2.13 an hour is not locked in. Their pay must at least equal minimum wage if they do not earn enough in tips.
 
It has been $2.13 for generations. That's ****ing ridiculous. I'm not tipping the owner, I'm tipping the server.

However, a tipped wage of $2.13 is backwards to the point of being offensive, so I'm not surprised that the anti-worker far right supports it.
 
Employers who dont pay a minimum wage should pay taxes to counter what the state has to pay in benefits.
 
As usual, wrong again. The $2.13 an hour is a starting point. It is not their full wage, like your opinion acts as if.
Bottom line, despite the virtue signaling, servers make VERY good money for the level of employment they work. Some of the highest out there.
Also - there are many-many other sales oriented jobs where they have ZERO wages.
 
1991. Generations.
 
A fee for service is not the same as a tip. You have a contract for which you are required to declare the fee as income. If you are operating a legit charity, the donation is tax deductible and the charity is not taxed. That is equitable.

But the golden rule is in effect. Those who have the gold make the rules. Not equitable for working class folks who depend on the generosity of their customers.
 
panic buyer said:
Employers who dont pay a minimum wage should pay taxes to counter what the state has to pay in benefits.
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They do, we are required to pay FICA/SS Taxes on their income, regardless how they earn it.
All of this has only come up due to the use of Debit/Credit cards. For many-many years tips were always cash, and were rarely ever reported.
By the 90s, the federal Government started clamping down on the system by requiring them to withdraw taxes based on "assumed minimal earnings".
So for instance, you own a restaurant. Wait staff all get tips, there is no way for you to know how much they received in tips - because it is cash.
So you are required to withdraw a minimum amount of tax on those tips.
 
iamwhatiseem said:
Deliberate Obtuse
For generations servers have received a very low wage, or any wages at all in server/wait jobs.
But that is what I have learned to expect from you. Non answers, deflection and run around.
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There's no getting through to you. Peace.
 

How is a tip (100% income for the server) not a fee for service? If their (normal and satisfactory) service had not been provided then there would have been no tip.
 
Ethel2 said:
“There's a pending budget reconciliation package in the works that will include eliminating taxes on Tips, Overtime,`and Social Security bennies. ”

None of that will ever happen.
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Maybe not. But it will be the fault of Congress - not Trump.
Trump makes a lot of promises which are never kept . . . just like every other president during their campaign.

Although some of Trump's promises have yet to be fulfilled, he has accomplished more in three weeks than most presidents accomplish in FOUR YEARS.

Trump delivered on his main promise, which was to secure the border and deport dangerous migrants who have entered the U.S. illegally. This promise is why he was elected, and he made good on that promise.

I think Congress will approve Trump's plan to eliminate taxes on tips, overtime,`and Social Security benefits. However, it's entirely possible that Congress might flatly reject the rest of the budget reconciliation package, which of course would preclude any tax cuts on tips.
 
In regard to "no tax on tips", if you give a gratuity in cash, they may or not claim it but these days, most people do not carry cash and often put their gratuities on a card. There's a record made of them to the individual that performed a service for you. They are responsible for taxes on those tips as part of their income. That's why I still give cash tips and I have always been very generous for good service. Most work for peanuts. I don't see my gratuity as a tip but a gift of thanks and personally do not think the government should get any part of it.
 
ttwtt78640 said:
How is a tip (100% income for the server) not a fee for service? If their (normal and satisfactory) service had not been provided then there would have been no tip.
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The tip is not obligatory. The server provides their service whether the tip is forthcoming or not. There is no contract, no fee. The customer is free to stiff the server if they want. A tip is a gift, plain and simple, completely at the discretion of the customer.

If the customer met the server at a party off duty, they could gift the server up to $18,000 with no tax for either. Every other person they meet could do the exact same thing with zero tax implications for anyone.
 
It used to be similar in the UK. I dont know if it is still the same. Waiting staff were taxed higher than kitchen staff.
But waiting staff were still paid a decent basic wage.
Eating in American restaurants is a demeaning experience. The staff are basically begging for tips.. Its demening for the staff and for the customer.
 
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One summer in college I delivered Pizza for Dominoes.... BAM!! On weekend nights during Basketball season - nothing to break $100 in tips, I broke $150 before. This was 1984. In today's money that is between $300 - $450 in one night.
Again - why should they not have to pay taxes on that kind of income?
 
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