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Tax free tips.
#15315864
01/27/25 10:50 PM
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Joined: Mar 2007
Posts: 3,175
TPACK
OP
TFF Team Angler
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OP
TFF Team Angler
Joined: Mar 2007
Posts: 3,175 |
What's your take on no tax on tips. I know a person who works weekends (2nd job) at a local restaurant and can make 400 per day on tips easily. Should that be tax free or does the idea of tax-free need some adjustments or guidelines. Do you think it is just a transaction between 2 parties involving a small amount of $$ that the government has no business in. With the tipping culture being what it is in 2025 some people waiting tables have to be making 40-50 bucks an hour during peak times. The days for tipping 2-3 bucks or 5 for a meal have gone to 15-20. Our family ate at a place 2 weeks ago and the minimum tip suggested was over 50 bucks. What are your thoughts??
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Re: Tax free tips.
[Re: TPACK]
#15315865
01/27/25 10:51 PM
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Joined: Jun 2021
Posts: 21,713
YEE_YEE
TFF Guru
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TFF Guru
Joined: Jun 2021
Posts: 21,713 |
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Re: Tax free tips.
[Re: TPACK]
#15315870
01/27/25 10:56 PM
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Joined: May 2007
Posts: 45,019
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 45,019 |
I'd love to stop having to pay matching payroll taxes on them but I suspect that won't happen.
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Re: Tax free tips.
[Re: TPACK]
#15315873
01/27/25 11:00 PM
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Joined: Jan 2021
Posts: 6,702
Rescue Fire
TFF Celebrity
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TFF Celebrity
Joined: Jan 2021
Posts: 6,702 |
Having to pay taxes on tips almost as bad as getting stiffed on an 8 top with everyone there running the waiter to death for free tea and coke refills.
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Re: Tax free tips.
[Re: TPACK]
#15315878
01/27/25 11:13 PM
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Joined: Dec 2007
Posts: 17,521
bloo_rainger
TFF Guru
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TFF Guru
Joined: Dec 2007
Posts: 17,521 |
I didn’t make any money on tips but I bet I made a million dollars in overtime in my lifetime. Be awesome to have that chunk of change… 
ALL HAIL TRUMP
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Re: Tax free tips.
[Re: TPACK]
#15315880
01/27/25 11:14 PM
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Joined: Dec 2003
Posts: 41,098
Allison1
TFF Guru
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TFF Guru
Joined: Dec 2003
Posts: 41,098 |
Tax them like income. We all know some, maybe all, cheat on it anyway. Why should they not pay taxes while others do?
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Re: Tax free tips.
[Re: Rescue Fire]
#15315889
01/27/25 11:28 PM
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Joined: May 2007
Posts: 45,019
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 45,019 |
Having to pay taxes on tips almost as bad as getting stiffed on an 8 top with everyone there running the waiter to death for free tea and coke refills. That's why wait staff hates Sunday lunch. The church crowd is cheap and self righteous lol
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Re: Tax free tips.
[Re: Allison1]
#15315891
01/27/25 11:29 PM
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Joined: May 2007
Posts: 45,019
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 45,019 |
Tax them like income. We all know some, maybe all, cheat on it anyway. Why should they not pay taxes while others do? There isn't much cheating, it's all credit cards and documented now. Probably 95 percent anyway
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Re: Tax free tips.
[Re: TPACK]
#15315918
01/27/25 11:58 PM
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Joined: Jan 2008
Posts: 15,287
Fishspanker
TFF Guru
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TFF Guru
Joined: Jan 2008
Posts: 15,287 |
Tax them. They are income. Those not making much pay very little they don’t get back in their tax return. Many get returns large than the amount they pay in through things like earned income credit.
Do not tax me. That’s a heck of an idea.
Tip shaming had gotten crazy. Some restaurants have the selections at 18%, 20% and 22%. It’s also on counter service at the same percents. Tips have a built in hedge against inflation. As checks continue to go up so do the tip amounts.
Last edited by Fishspanker; 01/28/25 12:04 AM.
The Sheep who only fears the Wolf is eaten by the Shepherd.
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Re: Tax free tips.
[Re: TPACK]
#15315926
01/28/25 12:04 AM
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Joined: Dec 2011
Posts: 4,547
JCBYEN
TFF Team Angler
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TFF Team Angler
Joined: Dec 2011
Posts: 4,547 |
I have no problem with no tax on tips. I’m waiting on Trump enacting no tax on Social Security benefits. That will help so many more folks. He reiterated again today he’s planning on getting it done.
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Re: Tax free tips.
[Re: TPACK]
#15315927
01/28/25 12:05 AM
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Joined: Mar 2017
Posts: 1,839
pchapin
Extreme Angler
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Extreme Angler
Joined: Mar 2017
Posts: 1,839 |
The nonpartisan Committee for a Responsible Federal Budget estimated that the Trump plan of exempting tips from taxes would cost the government $150-$200 billion over the next decade
With lower lifetime taxable earnings, tip workers could find reduced retirement benefits due to decreased contribution to Medicare and Social Security and may no longer qualify for the Earned Income Tax Credit.
'It gets sucked in'
P01135809
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Re: Tax free tips.
[Re: JCBYEN]
#15315928
01/28/25 12:05 AM
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Joined: Jan 2008
Posts: 15,287
Fishspanker
TFF Guru
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TFF Guru
Joined: Jan 2008
Posts: 15,287 |
I have no problem with no tax on tips. I’m waiting on Trump enacting no tax on Social Security benefits. That will help so many more folks. He reiterated again today he’s planning on getting it done. This I support.
The Sheep who only fears the Wolf is eaten by the Shepherd.
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Re: Tax free tips.
[Re: TPACK]
#15315996
01/28/25 02:02 AM
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Joined: Feb 2008
Posts: 15,069
DanXB-21
TFF Guru
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TFF Guru
Joined: Feb 2008
Posts: 15,069 |
I've got no problem with it... Just like I don't have a problem with a carpenter, plumber or concrete guy work on Saturday for cash... Half the business people in small town America will knock off a set amount if you pay cash... Dan
"The problem with having a sense of humor is often that people you use it on aren't in a very good mood"... Lou Holtz
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Re: Tax free tips.
[Re: TPACK]
#15315997
01/28/25 02:05 AM
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Joined: Feb 2008
Posts: 15,069
DanXB-21
TFF Guru
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TFF Guru
Joined: Feb 2008
Posts: 15,069 |
Oh, and maybe it will get people back into the service industry... It seems most restaurants are dying for servers, and waiters... Hell most restaurants around here are closed 2-3 days a week because of the lack of qualified employees.. Dan
"The problem with having a sense of humor is often that people you use it on aren't in a very good mood"... Lou Holtz
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Re: Tax free tips.
[Re: TPACK]
#15316050
01/28/25 03:19 AM
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Joined: Jan 2005
Posts: 234
bassguitarman
Outdoorsman
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Outdoorsman
Joined: Jan 2005
Posts: 234 |
I'll have to figure a way to report all my income as tips 
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