Re:Is 'No tax on tips' a distraction from the fight to end s...
by r00fus on Tuesday August 27, 2024 @01:52PM
(#41370565)
What's to prevent corporations and the rich from taking advantage of this? ie, my job is $10k + rest in "tips"?
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Re:Is 'No tax on tips' a distraction from the fight to end s...
by nickfromseattle on Tuesday August 27, 2024 @01:58PM
(#41370649)
The easiest seems like who is paying the "tip". If it's your employer, it's taxable compensation. If it's a customer, than it could be a tip.
Then there would probably be a bunch of sub-bullet points defining whether a tip is taxable depending on whether you have a direct relationship with the customer tipping you, whether the "tip" is mandatory, or at the discretion of the customer, are you in X roles (e.g. barista) within Y industries (e.g. food services).
Re:Is 'No tax on tips' a distraction from the fight to end s...
by Pet_Ant on Tuesday August 27, 2024 @02:23PM
(#41370964)
Okay, I hire a contractor to remodel the bathroom and I pay $1k and $10k in tips. I am the client.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by Matticus_Rex on Tuesday August 27, 2024 @02:35PM
(#41371121)
I think that's all taxable compensation even under the "no tax on tips" policy suggestions.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by beaglesss on Tuesday August 27, 2024 @02:35PM
(#41371129)
And now you've understood why every handyman job is on paper $1 under the limit at which they need a trades license.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by NotACop182 on Tuesday August 27, 2024 @02:06PM
(#41370770)
Easier way is to put a cap on how much you make. Let’s say 70k. Make more you don’t get the exemption prevents the rich from gaming the system.
Also define tips by industry. Service sector. End of story.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by tacticalturtle on Tuesday August 27, 2024 @03:12PM
(#41371652)
If you put a cap on income, then both you and the IRS need to maintain a record of the tips you received, to prove that you’re on the right side of the cap.
I don’t think that saves much in administration costs.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by carlosjobim on Tuesday August 27, 2024 @02:23PM
(#41370972)
Can you deduct tips paid as a business expense?
Re:Is 'No tax on tips' a distraction from the fight to end s...
by howard941 on Tuesday August 27, 2024 @05:06PM
(#41373046)
IANYTA but yes, it's a deductible expense just like the business meal.
Re:Is 'No tax on tips' a distraction from the fight to end s...
by carlosjobim on Wednesday August 28, 2024 @03:14AM
(#41376844)
I am not your true accountant?