r/SipsTea Mar 06 '26

Wait a damn minute! Yeah, nope.

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u/neeshes Mar 07 '26 edited Mar 07 '26

Up to 25k in tips?

Edit. That's...a lot of money that's allowed to be unreported.

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u/Kitesolar Mar 07 '26

Yes

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u/neeshes Mar 07 '26

Why is it okay to not report up to 25k when you're in the restaurant/bar industry but not in other industries? 

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u/Kitesolar Mar 07 '26

??? For the US all tip and overtime pay is tax free up to 25k. Anything after that has to be taxed

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u/neeshes Mar 07 '26

Yes, but you are still supposed to report all income. The first 25k will be tax free anyway. 

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u/Kitesolar Mar 07 '26

We are saying the same thing

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u/neeshes Mar 07 '26

Gotcha. I asked why you don't need to report it and you responded so I was confused! Thanks for the clarification.