The No Tax On Tips Act
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Hmm, this actually opens up a shit ton of confusion for Karla’s business. Most of the service providers are 1099NECs. A fair amount of their income is tip income, but the 1099NEC has no line item for tips. It’s all compensation… Karla’s scheduled to take over ownership next year, and will need to deal with this This will have a pretty big and weird effect on 1099 gig and service providers. All those UBER, LYFT, and Door Dash drivers are facing the same thing.
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But it’s nice that Strippers will be reporting $25K more in income…
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I would imagine the IRS will introduce a line item for qualifying tip income on 1099 and W-2 forms.
@jon-nyc said in The No Tax On Tips Act:
I would imagine the IRS will introduce a line item for qualifying tip income on 1099 and W-2 forms.
It’s still going to be difficult. The law is written that it has to be jobs that traditionally received tips prior to 2023. How do you prove that when official tax documentation didn’t show tip income? It’s a growing concern for the gig economy anyway since pro-labor Departments of Labor have been going after gig work in general, and this Department of Labor is as pro-labor as any in the last 40 years…
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@Doctor-Phibes said in The No Tax On Tips Act:
Here's the President getting a 15% tip.
Tip? Shit, he’s getting the whole thing.
@jon-nyc said in The No Tax On Tips Act:
@Doctor-Phibes said in The No Tax On Tips Act:
Here's the President getting a 15% tip.
Tip? Shit, he’s getting the whole thing.
In mother russia, waiter tips YOU!
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@jon-nyc said in The No Tax On Tips Act:
My silent protest will be to lower my normal tip rate to 15%.
Yup, and i know in some US states/cities, waiters are required to receive minimum wage.
I will never understand tipping where is becomes an expectation and not a reward as it was (I think) intended.
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I’m getting really tired of tipping while standing at a counter. Maybe if I ordered some fancy dessert drink involving the barista but not when they pour me a cup of drip.
Only non-witches get due process.
- Cotton Mather, Salem Massachusetts, 1692
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I’m getting really tired of tipping while standing at a counter. Maybe if I ordered some fancy dessert drink involving the barista but not when they pour me a cup of drip.
@jon-nyc said in The No Tax On Tips Act:
I’m getting really tired of tipping while standing at a counter. Maybe if I ordered some fancy dessert drink involving the barista but not when they pour me a cup of drip.
The general idea of tipping at that type of situation was pocket change… You buy a cup of coffee, it came to $2.83 with tax. Rather than walk around with another dime, nickel, and a couple of pennies, you can drop it into the jar… Now they expect the same tip that you would get for a high-end sit down restaurant.
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Yeah. I spent the last 6 mornings at a hotel with a $39 breakfast buffet and they’d bring me the machine where I had to choose 18, 20, 22% tip or go through the hassle of customizing it.
Only non-witches get due process.
- Cotton Mather, Salem Massachusetts, 1692
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Yeah. I spent the last 6 mornings at a hotel with a $39 breakfast buffet and they’d bring me the machine where I had to choose 18, 20, 22% tip or go through the hassle of customizing it.
@jon-nyc said in The No Tax On Tips Act:
Yeah. I spent the last 6 mornings at a hotel with a $39 breakfast buffet and they’d bring me the machine where I had to choose 18, 20, 22% tip or go through the hassle of customizing it.
I tipped 15% at our hotel breakfast buffet over the weekend. They are still cleaning up after me, and generally were also prepping the food and getting it to the buffet.
How do you treat ToGo?
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I tipped 10. If the price had been more reasonable I might have tipped more.
Stand up it depends. It’s usually easier to hit the smallest preset option than customize and there usually not that much money involved. At a counter I’m ordering a coffee or maybe coffee and bagel.
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Yeah. I spent the last 6 mornings at a hotel with a $39 breakfast buffet and they’d bring me the machine where I had to choose 18, 20, 22% tip or go through the hassle of customizing it.
@jon-nyc said in The No Tax On Tips Act:
Yeah. I spent the last 6 mornings at a hotel with a $39 breakfast buffet and they’d bring me the machine where I had to choose 18, 20, 22% tip or go through the hassle of customizing it.
Customize it, especially if it lets you put in a negative percentage.
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I’m getting really tired of tipping while standing at a counter. Maybe if I ordered some fancy dessert drink involving the barista but not when they pour me a cup of drip.
@jon-nyc said in The No Tax On Tips Act:
I’m getting really tired of tipping while standing at a counter. Maybe if I ordered some fancy dessert drink involving the barista but not when they pour me a cup of drip.
I consistently give no tip at places like Jimmy Johns pickup, drive through coffee line, stadium concessions. I've embraced the horrible feeling I get when I put zero (unless it's a holiday, then I tip to say thanks for working the holiday). I still tip places like haircuts, restaurant/bar, food delivery (we never get delivery though), and random things like a lady who did an awesome face paint job for my son at a school event, I gave her $5 even without a tip jar.
Not that my way is correct, but if you're tired of tipping when you think it's silly... just be the hero, embrace the zero.
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My biggest tipping question is when I stop to get takeout and order a beer while I’m waiting. I’ll tip 20% on the beer, but only like 10% on the food…
