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Neowynd101262 t1_j5v547n wrote

Maybe bad for tip based wages too. Do tips from cards get taxed?

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YoThatsFed OP t1_j5v9tns wrote

Probably yeah, didn’t think of that so much either. More or less of an issue depending on which country you’re in as tips vary massively in how much they contribute to your wages.

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AdMore3461 t1_j5vdvu2 wrote

Yes, it’s taxed. Technically even cash tips are supposed to be reported and taxed, but realistically most cash tips get pocketed and not reported. Tips on cards tend to be reported to the tax services by the employer, so they have to be claimed and taxed.

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YoThatsFed OP t1_j5vfsco wrote

I don’t think tips should be taxed really, it’s like a gift for doing good, don’t get taxed on gifts generally.

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AdMore3461 t1_j5vgvrm wrote

Yeah, I’m not mad at anyone underreporting tips on taxes either. I think the US tip/pay system is junk and needs to be scrapped anyways.

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YoThatsFed OP t1_j5vizpa wrote

The US tipping/waiter pay system is terrible, it should be illegal to have the majority of wages be tips.

Even in Europe I think tips shouldn’t be taxed though.

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Sentsuizan t1_j5y5uqg wrote

But you do have to pay taxes for gifts over a certain threshold. In a practical sense it only ever applies to things like cars and very expensive items.

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YoThatsFed OP t1_j5y9gja wrote

That’s why I said “generally”, there are exceptions of course.

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Sentsuizan t1_j5y9op7 wrote

Well yeah, and one of those exceptions is hundreds of dollars worth of tips that you get as part of your income.

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YoThatsFed OP t1_j5ya1yz wrote

You’re once again talking about the US, tips in the UK aren’t “hundreds of dollars” forming a large part of your income.

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