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In reply to the discussion: Senate unanimously approves bill to create tax deduction for cash tips [View all]creeksneakers2
(7,695 posts)See my response #27. https://www.congress.gov/119/bills/s129/BILLS-119s129is.pdf
Here's what it says: "‘‘(a) IN GENERAL.—There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).
I've worked in tipped professions an normally you only report cash. The employer already know what the tips are from charges and checks.
Elsewhere the bill says: "‘‘(1) IN GENERAL.—The term ‘qualified tip’
17 means any cash tip received by an individual...."
Here is how the IRS defines cash: "Now, what about “cash”? As explained in the IRS Form 8300 Reference Guide, “[c]ash includes the coins and currency of the United States and a foreign country. Cash may also include cashier’s checks, bank drafts, traveler’s checks, and money orders with a face value of $10,000 or less, if the business receives the instrument in . . . [a] designated reporting transaction . . . or [a]ny transaction in which the business knows the customer is trying to avoid reporting of the transaction on Form 8300.” Doesn't say anything about credit card payments.
What makes you so certain?
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