Quote:
Originally Posted by mac9
Having worked as a server while in school, I am sympathetic to the crap salaries that they receive. When I receive good service, I always tip 25 - 30%, but I never put it all on my credit card. I will put a few dollars as the tip on my card and leave the rest in cash. I have been thanked by many servers!
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I must be naive about leaving tips on my credit card. I always try to be generous with tipping good servers but never thought about the tax implications for them as I didn't know anything about how tips are reported as income. In reading another post somewhere here, I thought it implied that the total food bill is assigned to a server and the IRS assumes that 18% of the bill should be tip income for that server? Can someone clarify please....is a cash tip more beneficial for a server, and do these servers at Carrabbas, Outback, et al share their tips? Thanks for the info.