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Is that maximum $25k in tips, or in total income that includes tips?
by jagged-chisel 1y ago
Is that maximum $25k in tips, or in total income that includes tips?
- rayiner 1y agoTips. The AGI phaseout starts at 150k (300 married).
- fn-mote 1y ago300k before your tips start to become taxable?? What in the world is driving this very high ceiling?
- deleted 1y ago[deleted]
- rayiner 1y agoThat’s a typical phase-out threshold for dedications.
- cebert 1y ago300k isn’t what it used to be these days with inflation and cost of living. If you have kids and a house, things get expensive quickly.
- vasco 1y agoGet real, look at some statistics, that's more than 3x median
- dingnuts 1y ago[flagged]
- CalRobert 1y agoYes, it was Ferrari money and now it’s just Porsche money. Poor things.
- hiatus 1y agoThis is the problem when talking about class warfare. We are eating our own. Someone making $300k a year is closer to the median than someone making $5 million a year. Losing ~30% of your spending power since 2008 might not matter if you're a billionaire but for most working professionals it has an impact.
- CalRobert 1y agoYou make a good point - lumping people who make 500k a year with those making 5 million (or 50 million) a year is bad policy. It's still a very good income, though.
- ashdksnndck 1y agoRich people are more likely to pay accountants to come up with complicated ways to exploit the tax system. If the top 5% had access to this loophole, you’d probably end up with some crazy outcome like 80% of money saved from this deduction goes to the top 5% of earners. And that would make the provision more expensive to include in tax legislation (trading off against other things like the headline tax rate). Since “no tax on tips” was a campaign promise, they probably wanted to keep the promise while setting limits to make it easier to fit into the rest of the bill.
- tdeck 1y agoThey won't pay accountants, they'll tip them!
- jagged-chisel 1y agoOnly if the accountant’s accountant recommends receiving tips
- Frieren 1y agoKids of rich people now can exploit this loophole. They can get up to 300k from some fake job and do not pay any taxes on the "tips" part of it. Each month the tips part is going, oh surprise, going to be the maximum allowed by law.
- itake 1y agoIn tips