IRS claims waitresses and waiters, underreport their tips in cash by 84%. Bartenders?

a reply to: bigfatfurrytexan

I agree and ah, I was wondering as to why someone would attend a big name university that cost's over $300,000 for four years, graduate cum laude and work as a waitress and bartender. Hmmmmm. I must be the dummy.

Oh and I am still cleaning my own toilets. My wife wont let me hire a maid. Just did [2] this morning and have [3] more to go. Our family is full of sheet some say.

a reply to: CynConcepts

What about menus that have something such as "15% gratuity added for parties of x number of people" on them?

Not that it makes any difference.

a reply to: Ohanka

Just thinking about the Mega Cartels, John Brennon and James Comey. Toss in Clapper and the others.

a reply to: bigfatfurrytexan

Nah, I will just keep giving cash tips. I have no problem with not leaving a paper trail for IRS to follow. One place I worked as a waitress briefly, actually reported to government automatically an estimated 15% tip amount whether I actually received that much or not!

It sucked since as a newbie I was stuck with morning coffee drinker section and 25 cent tips were the thing. Thank goodness I was only there for two weeks before getting hired into an office job.

I realize the IRS looks at this differently, but the fact of the matter is that more often than not, that money is not saved but spent right back into our economy and taxed again and again.

a reply to: Waterglass

I have, currently, 2 with a bachelors degree working as server for us. I have a manager that spent 2 years as a server before deciding to apply for manager...she has a degree, too.

The thing about a college degree is that it depends on what you are educated in. A degree in marketing, journalism, etc...has little value. A lady i worked with recently who was the GM of a well known hotel...she had a degree in anthropology, but never worked in that field. She was always a server or FNB manager. We hired her as a catering and events manager before she was promoted to GM (she was fantastic in both roles).

For people who have a mind for hospitality, there is no shortage of cash that gets thrown around to enrich them.

originally posted by: roadgravel
a reply to: CynConcepts

What about menus that have something such as "15% gratuity added for parties of x number of people" on them?

Not that it makes any difference.

There you go! It is a contractual agreement for service and no longer considered a gift or reward thus up to 15% should be understandably be taxed. Anything beyond that amount should not be considered tax for service.

a reply to: LSU2018

I agree as actually the best are not the too thin or too overweight but the just in betweens. They seem to have the best stamina, can joke and relate. I was in an athletic fraternity in College and I saw something. All CONSENSUAL and we were at the maturity level of the Animal House movie fraternity.

Actually the house burned down uninsured in my Junior year. Brother FUD. He was the Chaplin. He passed out and his bong lit his sheets on fire in his personal room. He was entertaining with several ladies. All got out safe but the house burned down to the ground. Anyway I saw many somethings that to this day I never repeated to my wife. Yes, I saw but I did not participate. So when I hear that gal on the Bret Cava... thing I believe that she was a party piggy ~ hogg that enjoyed the wild side. Just sayin from experience.

a reply to: Ohanka

The rich use 501c3 organizations to limit their taxes. Then lease luxury items or purchase jets cars etc through the charity that they would otherwise spend from taxable income. They can then deduct those movies they donate to their chair from the remainder of their income up to 50percent. They do this all legally.

The only way to really eliminate it is have a single tax rate that's relatively low that everyone pays, no deductions.

Jaden

a reply to: bigfatfurrytexan

I wanted to be a lawyer but was forced to be an Engineer by dad. It was his money so that's all he would pay for. I was supposed to be a Mechanical Engineer and I hated it. I morphed into Industrial ~ Manufacturing engineering and liked it and got my 3.3 GPA. I also made my seven figures all on W2's and did a long stint with GM. I also went to Graduate school for MBA.

After college I never worked in supermarkets or bars, just manufacturing organizations. I did work from age 8 to 16 on my Grandparents farms. Working along with migrants in the fields picking fruit and vegetables. Since I was family we were paid less than the migrants for the same work. That was hard work in the sun.

a reply to: Waterglass

Engineers don't work outside their field when they graduate. STEM is in demand. Liberal arts is not.

My oldest got his degree in English, and then kind of had to be a teacher. Because someone with an English degree can't do much else.

He was solid in STEM (top of his high school class in math/physics), but chose liberal arts instead.

a reply to: Waterglass

Most waiters and bartenders make way under minimum wage in actual salary. None of them ever report all their earned tips, just the minimum needed for reporting purposes. There was many a week where my actual paycheck back in the day was zero with me working 40 hours a week. I managed to backpack Europe 2 years in a row for a month just with my tips.

Till they get paid even just minimum wage, I'm going to cut them some slack. I'd rather go after the Apples and Walmarts of the world who Park Billions in overseas tax haven arrangements to avoid paying US taxes.

What ever happened to going after all that untaxed money? Both Republicans and Democrats talked about doing it the last Presidential Election and then nothing every happened.

a reply to: bigfatfurrytexan


I have never made $100,000 per year ever. Freaking engineering degree along with an MBA from a top 50 ranked University program among US Business & News ranking and I still owe $13,000 in student loans. Now that's also on me. I was offered a job on Wall Street prior to graduating, working as a runner on the floor. starting at $175,000 in 2001 for a major firm. They would then morph me into a trader and then into the back room once you begin to burn out according to the VP who I interviewed with. Sorry, but living in New York City isn't for me.

a reply to: pavil

Correct. All they ever do is talk. Also the Social Security maximum for the rich should be abolished as they get a free ride on it.

originally posted by: CynConcepts
Personally, I have difficulty in understanding how tips are considered earned income. It is simply a rewarded charity gift that is given to another and varies greatly. I certainly don't see why tips given in any service should be claimed. I may pay my service bills with check or card, but always tip with cash directly.

This is why when I dine out I make sure to have cash on me. I leave a cash tip and write in the tip amount as “taxation is theft”. If you tip with your card it’s in the system and can be verified. Always try to help the other little people when you can. Screw the IRS, I’m dealing with those @&#ers now.

originally posted by: Waterglass
a reply to: LSU2018

She had a scheme in which she would go by food at the supermarket. Would spend around $300 on credit card but immediately reverse the transaction and take $150 cash back and actually spend the other $150 on groceries. I never caught on until after the divorce and I am seeing this in receipts. When your traveling all over the world on business and working 50-70 hours a week this sheet slips by.

BINGO! I wasn't traveling the world/country, but I was working from 2 am to 6 pm everyday (70 hours a week average) and would spend two weeks in Odessa, TX (14 hours west) every other month. The final straw was when I came home and saw a hickey on her neck. She broke down and admitted she'd cheated on me, but here's the killer/best part... It was a blotch of makeup she didn't realize was there.

a reply to: LSU2018

I used to live in Big Spring....Odessa is a real arm pit to find yourself in. Moreso than Big Spring.

Eliminate taxes from incomes one spends their time and energy to earn... keep taxes for incone streams that flow as a secondary means.

Shift to a consumer based tax system of which each state in responsible for appropriating. State employees pay the feds... keeping the IRS small and within public office space.

If someone saves their income to build upon they pay little to no tax. If people want a Mercedes G Wagon to look cooler, the taxes are set in place to be distributed as part of the sale of goods... easy peasy.

Not only would citizens pay their fair obligation of taxes in a consumer based taxation system, but tourists and importers of American goods would contribute to the taxation networks as well.

Why complicate taxes further? My services are for hire. I'd have a better foundation of establishment in how to obtain my services, but tax bracketry demands indicate that I must fund my fair percentage of Jones competitions instead... my apologies.

Waiters and waitresses have always not reported much of their tips. I was under the impression the IRS knew that fifty years ago. Some of the waitresses also collected welfare checks because they just had to claim the reduced wages they were paid, then later on, they made the waitresses report the minimum wage amount as their wages.

Waiters and waitresses make a lot of money, they also do not pay taxes on the majority of their tips. I have known lots of waiters and waitresses over the years personally, they usually made a real good living even before the new fifteen percent rule of thumb was implemented. I know one waitress that pulled in about fifty grand a year in a busy restaurant she worked in but she only claimed about fifteen grand, all of the waitresses that worked there reported similarly. so there was no way that the IRS could tax them without proof. Now with consensus changing, the IRS will say that the waitresses are responsible for fifteen percent of any customer charges that they waited on. I think that the big tipping push could possibly be implemented by some people in our government to gain tax money from the multitudes of people in the industry. They could use precedence to show every waitress is getting fifteen percent or more average and tax them on that.

Don't discount my idea, it could be just what is happening.

originally posted by: gortex
a reply to: Waterglass

Wonder at what percentage rate the super rich under reported their earnings for tax , my advice to the IRS would be leave the minnow's alone and go after the sharks.

The fact tips are taxed at all is pretty sad.

Ya, but low hanging fruit is so easy to pick

Man these guys are WORSE than Amazon!