The IRS should stay out of tips

[Rageaholic]

Since tips are technically optional, the IRS should stay out of them. It's bad enough that waitstaff get paid 2 bucks an hour, but tips, which are said to optional, are considered income? That's a load of crap!

It's bad enough that waitstaff get paid well below minimum wage and are relying on the grace of the customer to get anything, but even the tips are taxed? The system is screwed up enough, but you'd think servers would get a break. Since tipping isn't part of their income, than it shouldn't be taxed, plain and simple.

[Greenday]

Income is technically any money you take in. Thus tips are income.

[Boozy]

Tips are income, and that's taxable. I have no problem with this. I claimed my tips every tax year for the five years that I waited tables.

[Hobbs]

I'm just curious though...how do you think tips aren't a part of income?

[HYHYBT]

The problem isn't that tips aren't income: they are. The problem is that, since there's no reliable way to track what people *really* make in tips, the IRS assumes everyone is a liar and makes you pay tax on your tips whether you actually got any or not.

[Rageaholic]

Poor choice of wording on my part. What I meant is that since servers get paid below minimum wage, they shouldn't have to report their tips. Tipping is like a gift, a little extra between the customer and the employee. Why should the government get their hands on gifts? It would be like being given 5 bucks and having it taxed. I know I know, not the same since it's at work, but the idea is the same. The IRS should only have so much power.

[Hobbs]

Even monetary gifts are taxed, if I'm not mistaken...

[Rageaholic]

Even monetary gifts are taxed, if I'm not mistaken...

Then they shouldn't be. The IRS has their hands in everything it seems. They're like the mafia. I understand the need for them to exist, but that doesn't mean they should be given the power they have.

[linguist]

Poor choice of wording on my part. What I meant is that since servers get paid below minimum wage, they shouldn't have to report their tips. Tipping is like a gift, a little extra between the customer and the employee. Why should the government get their hands on gifts? It would be like being given 5 bucks and having it taxed. I know I know, not the same since it's at work, but the idea is the same. The IRS should only have so much power.

A full time server making 2.36 per hour (I think that's tipped employee wage, here at least) earns just under $5000 per year in hourly wages. Most full time servers make quite a bit more than that per year. Even if we were to consider tips gift income, gift income over $10000 must be reported and is taxable. Complaining about the IRS is useless; they don't make these rules they just enforce the tax laws passed down by congress. Don't like it? Complain to your congressman.

[Boozy]

Why should the government get their hands on gifts?

I'm sorry to have to break it to you, but the IRS taxes gifts too.

You can run. You can hide. But the IRS will get it's cut somehow.

[Sableonblonde]

I was under the impression that servers probably didn't claim ALL of the tips they made, anyway. Not to say waiters are lying cheats, but...how are you supposed to remember the exact amount of tips you made EVERY day? Unless of course you wrote the number down at the end of each shift...but do very many people actually do that?

I was excited when I started my most recent job over a year ago, because I'd be making more money than I ever made. But, once takes are taken out, I'm only making a tiny bit above minimum wage per hour. If I could actually take home the gross amount that I make, I could afford to have a nice apartment of my own instead of having to share a house with three other people. 35% of my check is taken out each payday. I understand taxes are important for our society, but it's kind of depressing sometimes.

[BlaqueKatt]

It's bad enough that waitstaff get paid well below minimum wage and are relying on the grace of the customer to get anything, but even the tips are taxed? <snip> Since tipping isn't part of their income, than it shouldn't be taxed, plain and simple.

But it is part of their income-if the employee doesn't make enough in tips to equal minimum wage the employer is forced to makeup the difference, so they do get minimum wage-if they don't report and pay taxes on their tips guess what? Yup their getting minimum wage+tips....

[powerboy]

I understand taxes are important for our society, but it's kind of depressing sometimes.

Quoted for truth.

[muses_nightmare]

I was under the impression that servers probably didn't claim ALL of the tips they made, anyway. Not to say waiters are lying cheats, but...how are you supposed to remember the exact amount of tips you made EVERY day? Unless of course you wrote the number down at the end of each shift...but do very many people actually do that?

I don't know about servers, but when I did my taxes from being a dealer and making tips I made sure to put as close to the full amount as possible, though, that was because of the horror story my supe told me about owing 11,000 after the casino was audited and she didn't report all of her tips. Didn't want to take that chance.

I was excited when I started my most recent job over a year ago, because I'd be making more money than I ever made. But, once takes are taken out, I'm only making a tiny bit above minimum wage per hour. If I could actually take home the gross amount that I make, I could afford to have a nice apartment of my own instead of having to share a house with three other people. 35% of my check is taken out each payday. I understand taxes are important for our society, but it's kind of depressing sometimes.

My boyfriend is in the medical field, this paycheque he would have grossed around $2400, he got to take home $1400, which really, we aren't complaining about, but they take a lot off the higher your income. We'd be out of debt a hell of a lot faster if he took home his gross.

[elsporko]

I would love to take home my gross pay, but I like things like roads and police officers. Taxes are groovy baby.