YoThatsFed OP t1_j5v9tns wrote on January 25, 2023 at 8:26 PM

Reply to comment by Neowynd101262 in The transition to digital currency is terrible for homeless people. by YoThatsFed

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.

AdMore3461 t1_j5vdvu2 wrote on January 25, 2023 at 8:50 PM

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.

YoThatsFed OP t1_j5vfsco wrote on January 25, 2023 at 9:02 PM

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

AdMore3461 t1_j5vgvrm wrote on January 25, 2023 at 9:08 PM

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.

YoThatsFed OP t1_j5vizpa wrote on January 25, 2023 at 9:21 PM

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.

Sentsuizan t1_j5y5uqg wrote on January 26, 2023 at 11:15 AM

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.

YoThatsFed OP t1_j5y9gja wrote on January 26, 2023 at 11:58 AM

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

Sentsuizan t1_j5y9op7 wrote on January 26, 2023 at 12:00 PM

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

YoThatsFed OP t1_j5ya1yz wrote on January 26, 2023 at 12:04 PM

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