Why aren’t tips tax deductible?

If you count them as revenue and pay them out they are deductible. Not deductible if you don't report them obviously

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unless you are talking about the person tipping

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I meant why isn’t tipping the same as a charitable donation?

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I meant why isn’t tipping the same as a charitable donation?

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Only donations to recognized charities are deductible, and then only if you itemize. Just handing to a bum $5 does not count, nor does tipping for service.

I take the standard deduction, so I get screwed on charitable donations. People who have a big mortgage and other deductions get to deduct their donations to the same charities. How the hell is that fair?

that's actually an excellent point....someone is a begging for charity, you donate to their cause...it is a charitable donation...I'm going to give a try this year

Like the tip you add at the end of a meal?

If the tip is part of a legitimate business expense, and it's documented, I would absolutely treat the tip the same as the underlying expense.

So... a tip for a business meal would just be added to the cost of the meal (50% deduction)

Tips for Uber drivers, if I made them in the app, would be part of business travel.

The problem is the couple of bucks in cash here and there for the doorman at the hotel, the skycap, etc. No way to substantiate those.