General Discussion
In reply to the discussion: Please always tip at least 15%, regardless of the service. [View all]still_one
(98,883 posts)I simple stated the fact that the IRS considers tips to servers as taxable income, and there are reporting rules for such.
This has been the case for quite some time, long before I was working and paying taxes, for example:
https://www.irs.gov/pub/irs-prior/i1040--1950.pdf
For places where auto-gratuity, mandatory-tipping occurs, usually on parties of six or more at some places, those are considered as non-tip wages.
https://www.irs.gov/taxtopics/tc761.html
It isn't that I agree or disagree, or how people actually report their tips to the IRS, the point is the law considers it as taxable income.
We can all believe that people should be paid a livable wage, and that tips shouldn't be required, but that isn't going to change the practice of the way things are done here currently.
This isn't Europe, so most realize they should be tipping their server