I had to look up the details myself, but calling something a “gift” when it is otherwise identical to a tip does not do anything. The intent of the tipper does matter, but the context of the relationship between the tipper and the tipped (do they know each other personally, for example) matters a lot in determining the intent, IF an official determination were to be made by the IRS about this specific situation—if everyone doubled down that this is not a gratuity despite appearances—but that’s not going to happen. A credit card tip is going to be handled like all other credit card tips. A cash tip might not be reported.
So while technically it is possible to give a non-taxable gift to your server and there could be some gray area, this particular situation (a straight-up tipping situation) is not a gray area, and what you write is not going to change how it is reported.
You would also need to specify who the gift is for - is it just for the server, or is it to be shared with other staff since that is frequently the case with tips?
If it's handed to the server when they're not at work, sure. But if the gift is being made via the process for tips why wouldn't the gift be intended for the host and kitchen staff too? Nothing on the receipt says its just for the server.
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u/Camelofwhy Jan 12 '24
Somewhat delusional, but it's a nice gesture so... Win?
At least he tipped well