'No tax on tips' not for sex workers

[Kevin Slater]

nytimes.com

WWW.NYTIMES.COM

 

Kevin Slater

[mike carey]

It seems that even leaving aside 'sex work' however defined, the tip exemption is going to be an enforcement nightmare challenge. Glad y'all got the Puritans and we got the convicts.

[Nightowl]

Do many providers report their income or taxes to the IRS?

[mike carey]

18 minutes ago, Nightowl said:

Do many providers report their income or taxes to the IRS?

I assume many do. National taxation authorities tend to pay attention to people whose declared incomes to not match their financial positions.

[+ Vegas_Millennial]

1 hour ago, Nightowl said:

Do many providers report their income or taxes to the IRS?

 

 

Yes, they do

 

Edited December 3 by Vegas_Millennial

[+ PhileasFogg]

Technically, this is an overhyped benefit to the working guy.  fICA is still due, most tip payers are on low marginal tax brackets anyway, so you’d have to be declaring huge taxable income and tips to reap much benefit.

[Kevin Slater]

5 hours ago, PhileasFogg said:

Technically, this is an overhyped benefit to the working guy.  fICA is still due, most tip payers are on low marginal tax brackets anyway, so you’d have to be declaring huge taxable income and tips to reap much benefit.

And it's not clear how this will impact one's state taxes, depending on which state he lives in.

Kevin Slater

[+ PhileasFogg]

2 hours ago, Kevin Slater said:

And it's not clear how this will impact one's state taxes, depending on which state he lives in.

Kevin Slater

Good point...on the surface, it doesn't impact state taxes without state level legislation.   

I think the technical accounting term is PITA

P ain

I n

T he

A ss

 

 

Edited December 3 by PhileasFogg