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Old 12-04-2007, 05:03 PM   #1
I wanna be a loser, too
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Join Date: Apr 2006
Location: Bay Area California
Posts: 3,540

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Default Paying a tip on a credit card

In one of the posts on here, techwife mentioned something about paying the tip in cash instead of on the credit card.

I wonder if all places claim that tip as income on your W2.

I know, all tips are supposed to be reported. How does the IRS know? I guess they don't know unless it is on a credit card or you report every single penny.

Many years ago, many restaurants and places would hold the tip back until they got payment from the merchant bank. I'm glad computers have put an end to that practice.
love n kisses,

Life does not happen in a vacuum. Lifestyle changes must transcend habits and routines. - thanks midwife.

Weight loss isn't linear and the body doesn't have a timetable. - thanks Glory87.

I think I can. I think I can. I think I can. I think I can.
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Old 12-04-2007, 05:49 PM   #2
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Join Date: Nov 2007
Location: South Carolina
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i've waited tables at four different places, and each i have had to claim my credit card tips into the computer in order to receive them. at the end of the shift, i have to claim at least my credit card tips in order to clock out. i think the IRS has a certain amount they believe you should be tipped based on your food sales but i'm not sure! i have generally not had to claim my cash tips, but i do so sometimes because i fear of being audited one day!
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Old 12-04-2007, 06:07 PM   #3
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WOW, that is so good to know. I will ALWAYS leave a cash tip from now on. Big brother doesnt need to worry about the dang watresses and such when there are people like Donald Trump that they need to look at.
Stacy - I may not be able to lose 100 pounds, but I can lose 10 pounds 10 times!

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Old 12-04-2007, 07:11 PM   #4
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We always tip in cash - my DH drives a limo and his company takes 10% of any tip on a credit card for "processing"
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