Quote:
Originally Posted by Bill14564
You can spend a lot of space working math problems but that doesn’t change the fact that this deduction, only available to some tipped workers, will exempt the first $25,000 in tips from federal income tax.
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Yes it will. I'm not challenging that assertion. I'm challenging the assertion that it is - specifically - "no tax on tips." That's the topic of this thread, that's what everyone is commenting about.
It isn't "no tax on tips." It's "deduction on SOME tips." Words have meanings.
Seniors have deductions that younger people don't have. Veterans get tax breaks that non-veterans don't get. Rich people get tons more deductions than poorer people get, and some of them can deduct so much, that the tax they pay to the IRS ends up being LESS than what some poor people pay.