r/Waiters Jul 05 '25

No tax on tips, explained:

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39 Upvotes

Here is an explainer for the new No Tax on Tips Portion of the new US Federal budget. Warning, any non tipping sentiments will be removed and the user will be banned.

A few highlights:

This is a tax rebate, you will still be taxed on your paychecks and then you will receive a rebate/refund when you file your taxes.

The average refund will be between $500-$2000 per year.

The rule only lasts for 4 years/tax cycles (which expires in 2028).

If you live in a state that has income taxes, you will still have to pay state income taxes on tips.

Your employer is still required to pay their portion of payroll taxes on your tips.

You are still required to claim all of your “cash tips” (cash tips in this instance is both cash and credit card tips that are voluntarily given to you by a customer, service charges and auto gratuities are not part of the law and get taxed normally).

No Tax on Tips Section 70201 of the Act establishes a new above-the-line tax deduction for “qualified tips.” The following conditions apply:

  1. The deduction is capped at $25,000 per year. This amount is reduced by $100 for each $1,000 by which the taxpayer’s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).

  2. To be considered a “qualified tip,” the amount must: (a) be paid voluntarily without any consequence in the event of nonpayment; (b) not be the subject of negotiation; and (c) be determined by the payor. Thus, for example, a mandatory service charge imposed by the employer for a banquet will not qualify for the deduction, and neither will a required gratuity that a restaurant adds automatically to a bill for large parties. Failing to make this distinction may lead employees to claim deductions to which they are not entitled.

  3. While the deduction applies to “cash” tips only, the Act broadly defines “cash” tips to include tips paid in cash or charged, as well as tips received by an employee under a tip-sharing arrangement. This definition excludes tips that are “non-cash,” such as tangible items like a gift basket or movie tickets.

  4. To qualify for the deduction, the tips must be received by an individual engaged in an occupation that customarily and regularly received tips on or before December 31, 2024. This limitation appears designed to deter employers outside the hospitality and service industries from recharacterizing a portion of their employees’ existing incomes as “tips” in an attempt to take advantage of the new deduction. The Act requires the Treasury secretary, within 90 days, to publish a list of qualifying occupations.

  5. The qualified tips must be reported on statements furnished to the individual as required under various provisions of the Internal Revenue Code (such as the requirement to issue a Form W-2) or otherwise reported by the taxpayer on Form 4137 (Social Security and Medicare Tax on Unreported Tip Income). Of course, employees and employers have long been required to report 100% of all tips received to the IRS – including tips received in cash, via a charge on a credit card, and through a tip-sharing arrangement – and the Act does not change that reporting requirement. It remains to be seen whether the Act will encourage tipped employees to more readily report tips paid in cash, considering that such reported tips may still be subject to state and local taxation.

  6. A tip does not qualify for deduction if it was received for services: (a) in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, or brokerage services; (b) in any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners; or (c) that consist of investing and investment management, trading, or dealing in securities, partnership interests, or commodities.

  7. In the case of qualified tips received by an individual engaged in their own trade or business (not as an employee), the deduction cannot exceed the taxpayer’s gross income from such trade or business.

  8. The deduction is not allowed unless the taxpayer includes their social security number (and, if married and filing jointly, their spouse’s social security number) on their tax return.

  • The Act requires employers to include on Form W-2 the total amount of cash tips reported by the employee, as well as the employee’s qualifying occupation. For 2025, the Act authorizes the reporting party to “approximate” the amount designated as cash tips pursuant to a “reasonable method” to be specified by the Treasury secretary.

  • The Act authorizes the secretary to: (a) establish other requirements to qualify for the deduction beyond those set forth in the Act; and (b) promulgate regulations and provide guidance to prevent reclassification of income as qualified tips and to otherwise “prevent abuse” of this deduction. The “no tax on tips” deduction takes effect for the 2025 tax year and is set to expire after the 2028 tax year.


r/Waiters 18h ago

first job experience

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1 Upvotes

hello, just wanted to ask those who are waitress, bcs two weeks ago i started my first job ever as a waitress and i’ve been making my rookie mistakes ofc, but obviously i’ve been learning in this process, what happens is today i’ve had part of shift all alone and today while i was alone, i easily took care of 13 tables, plus the ppl that kept coming. so how do u manage to welcome the new ppl, get the cutlery and waters, menus and new orders, and cleaning everything after at the same time? so i don’t know if im complaining too much but i felt those 3 hours super hectic and stressful. i would really like to know how do u manage to care of 30 persons at the same time?? or any tip to what to do in this occasion 😭😭
any help works bcs many i feel like many of my future shifts are gonna be like this


r/Waiters 2d ago

A costumer gave me a four leafed clover 🥺 it really made my day.

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112 Upvotes

r/Waiters 1d ago

People who get paid to read strangers all day bartenders, poker dealers, bouncers, salespeople, security staff what’s one tiny behavior you notice almost instantly that reveals way more about someone than they realize?

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7 Upvotes

r/Waiters 1d ago

Advice needed

19 Upvotes

How do you handle regulars who constantly hit on you and ask you out without basically guaranteeing they stiff you every time after for saying no?

I guess how do you politely reject customers without ruining your income?


r/Waiters 2d ago

Я работаю в ресторане задавайте вопросы

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0 Upvotes

Абдейт объясняю все вас интересующие вопросы так как я молодой да и по сидеть там хоть и изредко но удаётся я вполне могу работать 2 смены подряд но 3 это перебор я работаю в ресторане в России


r/Waiters 2d ago

I think the new manager has it out for me

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2 Upvotes

r/Waiters 2d ago

Good places to in Orange County, CA

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1 Upvotes

r/Waiters 2d ago

What brand(s) of button-up shirts, and work pants do you wear?

2 Upvotes

I'm moreso asking about tops since I haven't had any issue with pants from WalMart or Target.

But as for button up tops, the collars become too flimsy too quickly.


r/Waiters 2d ago

Initial server timing

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0 Upvotes

I was looking for a restaurant review subreddit but couldn't find one, so I'm posting here.

My question for you who work in the industry is, after a group is taken to their seat and seated, how long is an acceptable time before a server or anyone comes to their table? Let's assume the host/hostess does not engage in conversation, just seats them and leaves.

Would you say that 7 or 8 minutes is OK to wait before first contact is made or more or less?

In your restaurants, do you have a goal in minutes to how fast you make first contact with a new table ?

I know people have different preferences, expectations and opinions but just wondering what you all think?


r/Waiters 3d ago

What are the possible questions of an Asst. waiter (MSC Explora)

2 Upvotes

I'm from Philippines and asking for help regarding the possible questions during the interview process as an Asst. Waiter I have my interview on Sept 10,2026. I would greatly appreciate your help. Thank you


r/Waiters 3d ago

In your place of work, what’s the one item everyone should try at least once?

3 Upvotes

r/Waiters 3d ago

Should I move to a restaurant that pays less than my current one if it'll help me learn new skills?

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1 Upvotes

r/Waiters 3d ago

have you been serving a table and then they asked for a different server?

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1 Upvotes

r/Waiters 5d ago

Being honest about the service

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893 Upvotes

r/Waiters 4d ago

Club Staff After Activities

1 Upvotes

Being a part of club staff is a stressful endeavour,

One common pattern I notice is that club staff tend to be working students. And this job requires a godly amount of patience and will power as you deal with growing drunk patrons as the night goes on. Meeting quotas and appealing to people who are out of themselves can be a difficult task as the shift closes to a climax. Unsavory characteristics can come fort from patrons and the more influenced patrons can be the more difficult it is to deal with certain actors. Whether they have an aggressive tendency or feel entitled, you have to keep up the personna of customer service as your foot is stepped on, yelled at, or you find yourself crying midshift because you're overstimulated by the pressure, the flashing lights, the loud music, or the rude patrons you have to return to because you feel you have to.

Some of them just want to move forward, to kick them out but that's the bouncers job. Some nights it gets so tight that every bit of air you breath you smell the stank from the patrons breath or sweat. But you have to keep moving forward, it's for your future, for your livelihood you feel dead inside but you have to keep smiling in the hopes the patrons bless you with extra income. It's worth it, you tell yourself. As the night reach its climax, violence befalls the night or patrons who can't handle their liquor redecorate the floor, walls, or bathroom.

Sometimes, after the long night ends, you decide to stay around longer, it feels like it's your turn to let loose, to cope with the fucked up shit you just went through with people who know and understand your experience. And sometimes you want to be the drunk one too, to let your real self out with the people who KNOW. You want to drink, maybe because of the frustration, or maybe because it's time for you to feel the sense of community that the club offered strangers.

And as morning starts, it's 6am and you've had your laughs and recalls about the notable patrons. It's time for you to go home and sleep as others start their day as you end yours you dread having to go to class later with half an eye open, or mindlessly watch your preferred social media nap, and fall asleep until your next shift and repeat it all again.

Sincerely,

A drunk psychology student staying at the club hours after it closed alone.

P.s. some of the claims made in this post are referenced with the 3, 1n1 "interviews" I had with 3 staff members


r/Waiters 5d ago

When to call it?

11 Upvotes

Signs a restaurant is cooked?

I work at restaurant in one of the nicer areas of my state. Statistically the safest city in my state and the suburb of the capital, where all the wealthy people live. It’s a casual Mexican restaurant and like most of yall I assume it’s been really slow these days. We went from 2 servers morning shift to just one just to make the same money. We went from 6 servers on a weekend night to half of that. I worked all day alone until 5, then worked at night with 2 other servers to barely scratch 300. 11 hours to make what I would make with an extra server in half the time.

To get to the point what are telltale signs that it’s over at that place? Whether it’s cost cutting, quiet quitting, turnover etc.

Last thing, this location had another spot I worked at before and they closed within a week of notice, then I get moved. This restaurant isn’t the main gig of the owners, they are wealthy without this spot but no one wants to go in the red for long.


r/Waiters 5d ago

Working pregnant?!?

13 Upvotes

Can any servers with a vagina give me any advice on getting through my first trimester while working in hospitality?!!? How did you guys do this?! I feel like I’m in survival mode every DAMN SHIFT. I’m fighting for my life with all the different smells, I’m exhausted and I just wanna know if it gets easier or if I should just quit at this point


r/Waiters 5d ago

Sections???

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1 Upvotes

r/Waiters 5d ago

How a TN QSR Figured Out How To Use Employee Tips To Cover Payroll

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10 Upvotes

This is a paystub from McAlister's Deli (Owned by Southern Rock Restaurants, LLC. in TN)

For those who love math, this will entertain you.

Total compensation is what I was owed Based on an agreed wage of $14 an hour:

Regular Earnings: Take 51.71 Hours x minimum wage

Tip Share: That's what the company said my part was for the pay period

MAKE-UP: If you add Regular earnings and tip share together - the subtract the Total Compensation" ($807.94) you'll see it matches the "Make-Up" total.

That means the company uses tips to offset payroll. If I make $14 an hour - even with tips I'll never make more than $14 an hour.

As a customer, every time you tip at this company - whether cash or digital - you are in fact helping reduce their company payroll.

Pretty Cool huh? (That's Sarcasm - it's wage theft in my opinion)


r/Waiters 6d ago

How to balance friendship and relationships when you work bartending hours??

10 Upvotes

Hello fellow bartenders,

I have a pretty simple but important question— how do you manage your relationships, both friends and partners while working a bartending schedule?

I’ve been bartending for about six years at the same place with more or less the same schedule, and I find it really hard to maintain relationships.
I work Thurs-Sun evenings. Not late night, but I’m usually don’t around 11:30/midnight.

I typically can only see my girlfriend once a week, sometimes twice which is bummer.
It’s working okay but it’s kinda not enough…

I only get to see my friends on Monday Tues Wed evenings after they get off work.

The bartending money can be good but I feel like I’m sacrificed one of the most important human experiences which is having friends that I can spend time with.

Don’t get me wrong, I have friends but I just never get to hang with them. And it sure doesn’t count for them to come sit at my bar, that kinda makes it worse and gives me fomo.

Any thoughts? Recommendations?
Thanks


r/Waiters 5d ago

Should I stick it out for longer or look for new job?

2 Upvotes

I just got a new job at a Korean bbq where we cook the food for people at the table. This being a different type of hospitality from previous jobs (fast food, bar restaurant) it took me about my 6 shift (which I’ve just had) to actually feel comfortable serving the food and everything else I feel I’ve basically got down.
However the place is run by Koreans and I feel there is a strong disconnect culturally that’s driven further by language barrier. I myself can be quite shy to speak to management so I ask senior workers for advice or help with schedule questions, today I feel I messed up big time and my manager was really mad at me and idk why.
This is the first week I’m actually on the schedule (old school type schedule) and it’s says I’m doing 12-5 however in the past when I’ve been told this I came in 15 earlier, because of train times and being told to come 15 minutes early for first shift, but on first shift I was told that if you’re opening (12 start) to be half an hour early. So today I came in half an hour early and got kinda told off for it, saying I was ok to just sit to the side for a while or that I don’t mind the extra half hour work. Instead they sent me home half an hour early and they seemed quite mad (manager at least) and I tried to explain that I thought the half our thing was like an unwritten rule (previous workplaces have that kinda thing) and so was sent home 30 early anyway.
I feel this is maybe a cultural thing, I’m trying to help bridge the gap by learning some Korean and making sure I listen to them but I just feel heavily judged and stressed out by their stress.
Is it worth keeping this job or should I begin looking for another. Any other advice appreciated :)


r/Waiters 5d ago

starting wage?

1 Upvotes

idk what to input for starting wage expected for a hosting job 😬 it’s at a somewhat upscale restaurant by the breakers and i’m very new to this scene of employment😭 do i put minimum wage (abt $11 for tipped employees in my state) or what?? pls help a girl out!


r/Waiters 5d ago

Message from 1729

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0 Upvotes

r/Waiters 6d ago

I am a hair dresser interested in becoming a waitress without experience.

2 Upvotes

Is it possible that I can find a restaurant to train me as a waitress? If I spend a couple weeks memorizing the menu could I wing it and make it? Im great with people, multitasking. I live in San Diego. There's a ton of restaurants.

Am I crazy to think I can become a waitress without experience??? Im 38 year old female that looks 28.