2 ms·
> do you actually pay taxes on tips in the US Yes, they are taxed the same as wages. For tips done via credit/debit card, that will even be reported and have t
by TheCoelacanth 10y ago
> do you actually pay taxes on tips in the US
Yes, they are taxed the same as wages. For tips done via credit/debit card, that will even be reported and have taxes withheld by the employer. For cash tips, the recipient is supposed to report them on their own, though of course, it's fairly common not to report the full amount because it's hard for the government to track.