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I don't know if there's been case law behind it, and I certainly wouldn't want to be the one to try it, but I feel like there's a strong argument to be made tha
by donatj 5y ago
I don't know if there's been case law behind it, and I certainly wouldn't want to be the one to try it, but I feel like there's a strong argument to be made that tips are gifts from the consumer to the wait staff.
That said, gifts totaling under $15,000 are non-taxable.
- notriddle 5y agoNope. Tips are their own, special thing described in tax law. https://www.irs.gov/taxtopics/tc761 https://www.irs.gov/taxtopics/tc761
- donatj 5y agoI’m not saying it’s not the IRS’s position, it certainly is, but there is a pretty clear argument to be made that the IRS is wrong. https://www.palisadeshudson.com/2013/09/if-gifts-are-not-income-why-tax-gratuities/ https://www.palisadeshudson.com/2013/09/if-gifts-are-not-inc...