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Started By
Message
No Tax on Tips has Servers Melting
Posted on 7/13/25 at 7:50 am
Posted on 7/13/25 at 7:50 am
Seen a few videos scrolling the facebooks today.
Seems they finally realized it’s a tax deduction. The problem? They have been pocketing their cash tips and not claiming the income. Credit card tips are easily tracked by an employer. Its hitting them that they have to be honest with the IRS now and they are screwed.
Seems they finally realized it’s a tax deduction. The problem? They have been pocketing their cash tips and not claiming the income. Credit card tips are easily tracked by an employer. Its hitting them that they have to be honest with the IRS now and they are screwed.
27
Posted on 7/13/25 at 7:52 am to beebefootballfan
Why would the way they report their tips change?
Posted on 7/13/25 at 7:53 am to beebefootballfan
when you started with "seen" I should have known what was coming.
Posted on 7/13/25 at 7:54 am to beebefootballfan
Just like when the shrimpers got hit with the BP oil spill and had to use their tax returns to prove their losses.
Their losses were much bigger, but they couldn't go there.
Posted on 7/13/25 at 7:54 am to beebefootballfan
Wait, they thought you could just pocket the money and not report it?
Really?
Really?
Posted on 7/13/25 at 7:57 am to beebefootballfan
Cash in the pocket - no reporting
quote:
they have to be honest with the IRS
Posted on 7/13/25 at 7:57 am to beebefootballfan
They can still pocket cash tips.
Posted on 7/13/25 at 8:00 am to beebefootballfan
quote:
Its hitting them that they have to be honest with the IRS now and they are screwed.
2019/L5uqIj.gif>Posted on 7/13/25 at 8:09 am to Mandtgr47
I think he meant “seended”!
Posted on 7/13/25 at 8:11 am to 1BIGTigerFan
quote:
Why would the way they report their tips change?
Exactly.
They can and will still pocket cash tips. This will help them out with the CC tips, and those that have "communal tips" that are recorded and disbursed at the end of the night.
Posted on 7/13/25 at 8:14 am to beebefootballfan
quote:
Its hitting them that they have to be honest with the IRS now and they are screwed.
What? They can still keep cash tips and never report them. That's 0% income tax.
Credit card tips are already taxed. Most servers wouldn't exceed the standard deduction in claimed tips anyway.
Nothing changed for most tip wage earners. They'll take the standard deduction and keep cash tips unreported.
Posted on 7/13/25 at 8:18 am to beebefootballfan
quote:
Seen a few videos scrolling the facebooks today.
Seems they finally realized it’s a tax deduction. The problem? They have been pocketing their cash tips and not claiming the income. Credit card tips are easily tracked by an employer. Its hitting them that they have to be honest with the IRS now and they are screwed.
I don't know why people didn't pick up on the real goal of "no tax on tips" was to pull a gray market of labor revenue fully above board and taxable.
Posted on 7/13/25 at 8:19 am to beebefootballfan
They’ll just continue to not report cash tips without fear of repercussions.
More importantly the IRS won’t be wasting resources investigating someone who didn’t claim 10k in tips.
Hopefully this leads to the reduction of IRS employees.
More importantly the IRS won’t be wasting resources investigating someone who didn’t claim 10k in tips.
Hopefully this leads to the reduction of IRS employees.
Posted on 7/13/25 at 8:22 am to udtiger
quote:
They can and will still pocket cash tips. This will help them out with the CC tips, and those that have "communal tips" that are recorded and disbursed at the end of the night.
This is how it's done.
Posted on 7/13/25 at 8:23 am to beebefootballfan
They dumb if they think it's a bad deal.
Who cares if it's reported since it's non taxable? And the IRS assumes you got a percentage of the check so it's a cut even if you're pocketing cash tips.
Who cares if it's reported since it's non taxable? And the IRS assumes you got a percentage of the check so it's a cut even if you're pocketing cash tips.
Posted on 7/13/25 at 8:23 am to theCrusher
quote:
They’ll just continue to not report cash tips without fear of repercussions.
More importantly the IRS won’t be wasting resources investigating someone who didn’t claim 10k in tips.
Hopefully this leads to the reduction of IRS employees.
Maybe I'm a cynic, but I think the IRS prefers to go after small unpaid taxes amounts from small businesses and low-to-middle income individuals because it has the most successful outcomes. You invest time and money into getting a large corporation or billionaire who is swindling the government, you're apt to come out empty handed because you get bogged down by their lawyers. They'd rather pounce on a single mom who owes 10k in tips that can't afford legal representation than a corporation who owes 10m with a fleet of legal counsel.
Posted on 7/13/25 at 8:25 am to Diego Ricardo
quote:
I don't know why people didn't pick up on the real goal of "no tax on tips" was to pull a gray market of labor revenue fully above board and taxable.
Because it doesn't match reality on the ground. The average tip wage earner makes $32k/yr full time. They're not itemizing deductions. They'd pay more.
Posted on 7/13/25 at 8:26 am to beebefootballfan
Dear Fakebook
Posted on 7/13/25 at 8:33 am to Bestbank Tiger
quote:
Who cares if it's reported since it's non taxable?
It is taxable. A certain amount is deductible.
In fact, there will likely be fraud in the other direction. Claim $35k in reported take-home and wage, $10k in cash tips, lie and say you made $20k extra in cash tips, pay less overall taxes because you claim deductions you normally couldn't.
It's cash, there's no way to verify they didn't get that money. Now they get an extra $7500 in refund over the standard deduction.
Posted on 7/13/25 at 8:34 am to Diego Ricardo
quote:
They'd rather pounce on a single mom who owes 10k in tips that can't afford legal representation than a corporation who owes 10m with a fleet of legal counsel.
Doubtful. Going for a big score with a corporation is time and work but a lot of tax departments are understaffed so smaller assessments aren't worth fighting. They could collect 10x what they can get from your single mom by just shitting out a letter to a 20B revenue company.
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