Tax Free Gratuity

Tax Free Gratuity

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Benjamin Gibson started this petition to Servers and

if I gave my brother $100 for his birthday he gets to put it in his pocket and move on with his day, BUT if I have an amazing meal where he’s a server in which I just hit it big and I’m feeling generous and leave him a $100 tip then he now has to claim taxes on it because Uncle Sam wants a piece of MY GRATUITY.

When you look at the US and all the different jobs that are available, many jobs are professions where people receive tips, coffee stands, bar tenders, waiters, casino dealers, hair stylists, etc. 

TIPS is usually referred to as “To Insure Prompt Service”

When you get taxed on your paycheck, you are getting taxed for the hours you worked from your employer who is providing your hourly paycheck correct? With that being said, people who are giving you the tips ARE NOT your employers, they are providing you with a “Gift” for doing a good job so how can we get taxed on something that our employer is not giving us that is also NOT guaranteed but yet we have to claim as income.

If you agree that TIPS are considered gifts for doing a good service “from the job you’re already being paid hourly for” then you can’t argue it has to be tax-free.

 Thank you

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