4 ms·
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
by nickfromseattle 2y ago
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).
- deleted 2y ago[deleted]
- NotACop182 2y agoEasier 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.
- tacticalturtle 2y agoIf 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.
- Pet_Ant 2y agoOkay, I hire a contractor to remodel the bathroom and I pay $1k and $10k in tips. I am the client.
- Matticus_Rex 2y agoI think that's all taxable compensation even under the "no tax on tips" policy suggestions.
- beaglesss 2y agoAnd now you've understood why every handyman job is on paper $1 under the limit at which they need a trades license.