5 ms·
Where do you get this idea? In the US there is a line on the income tax form that explicitly asks for how much you earned in tips, and that is explicitly counte
by larkost 5y ago
Where do you get this idea? In the US there is a line on the income tax form that explicitly asks for how much you earned in tips, and that is explicitly counted into your wages for income tax purposes.
- lampington 5y agoHow much tipping these days is cash vs card? I would imagine that cash tips are underreported on tax forms.
- hirsin 5y agoCredit tips are cashed out at the end of the day, generally speaking, so that the "credit tips" are offset by unreported "food cash payment" that sits in your pocket all night. (I believe it also relies on the business underreporting sales, but... Cash. Also likely hiring the wait staff under the table)
- bombcar 5y agoTips are effectively tax free as reporting rates are abysmal.
- barbazoo 5y agoHow would this realistically be enforced though without there being a paper trail at all? Kudos to those honorable people that do declare tips on their tax return though.
- mod 5y agoThere's a default rate (percentage) that gets used in the event of an audit, I believe. If you are somewhere that tracks your individual sales, you'll get hit with this. To be fair, the rate is pretty low and so almost everyone will still have a large percentage of their tips go untaxed.
- fredophile 5y agoMy stae also has a line on my taxes for me to declare and pay sales tax on anything I bought out of state that year. How many people do you think accurately fill that line out?
- deleted 5y ago[deleted]