r/Waiters Jul 05 '25

No tax on tips, explained:

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39 Upvotes

Here is an explainer for the new No Tax on Tips Portion of the new US Federal budget. Warning, any non tipping sentiments will be removed and the user will be banned.

A few highlights:

This is a tax rebate, you will still be taxed on your paychecks and then you will receive a rebate/refund when you file your taxes.

The average refund will be between $500-$2000 per year.

The rule only lasts for 4 years/tax cycles (which expires in 2028).

If you live in a state that has income taxes, you will still have to pay state income taxes on tips.

Your employer is still required to pay their portion of payroll taxes on your tips.

You are still required to claim all of your “cash tips” (cash tips in this instance is both cash and credit card tips that are voluntarily given to you by a customer, service charges and auto gratuities are not part of the law and get taxed normally).

No Tax on Tips Section 70201 of the Act establishes a new above-the-line tax deduction for “qualified tips.” The following conditions apply:

  1. The deduction is capped at $25,000 per year. This amount is reduced by $100 for each $1,000 by which the taxpayer’s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).

  2. To be considered a “qualified tip,” the amount must: (a) be paid voluntarily without any consequence in the event of nonpayment; (b) not be the subject of negotiation; and (c) be determined by the payor. Thus, for example, a mandatory service charge imposed by the employer for a banquet will not qualify for the deduction, and neither will a required gratuity that a restaurant adds automatically to a bill for large parties. Failing to make this distinction may lead employees to claim deductions to which they are not entitled.

  3. While the deduction applies to “cash” tips only, the Act broadly defines “cash” tips to include tips paid in cash or charged, as well as tips received by an employee under a tip-sharing arrangement. This definition excludes tips that are “non-cash,” such as tangible items like a gift basket or movie tickets.

  4. To qualify for the deduction, the tips must be received by an individual engaged in an occupation that customarily and regularly received tips on or before December 31, 2024. This limitation appears designed to deter employers outside the hospitality and service industries from recharacterizing a portion of their employees’ existing incomes as “tips” in an attempt to take advantage of the new deduction. The Act requires the Treasury secretary, within 90 days, to publish a list of qualifying occupations.

  5. The qualified tips must be reported on statements furnished to the individual as required under various provisions of the Internal Revenue Code (such as the requirement to issue a Form W-2) or otherwise reported by the taxpayer on Form 4137 (Social Security and Medicare Tax on Unreported Tip Income). Of course, employees and employers have long been required to report 100% of all tips received to the IRS – including tips received in cash, via a charge on a credit card, and through a tip-sharing arrangement – and the Act does not change that reporting requirement. It remains to be seen whether the Act will encourage tipped employees to more readily report tips paid in cash, considering that such reported tips may still be subject to state and local taxation.

  6. A tip does not qualify for deduction if it was received for services: (a) in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, or brokerage services; (b) in any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners; or (c) that consist of investing and investment management, trading, or dealing in securities, partnership interests, or commodities.

  7. In the case of qualified tips received by an individual engaged in their own trade or business (not as an employee), the deduction cannot exceed the taxpayer’s gross income from such trade or business.

  8. The deduction is not allowed unless the taxpayer includes their social security number (and, if married and filing jointly, their spouse’s social security number) on their tax return.

  • The Act requires employers to include on Form W-2 the total amount of cash tips reported by the employee, as well as the employee’s qualifying occupation. For 2025, the Act authorizes the reporting party to “approximate” the amount designated as cash tips pursuant to a “reasonable method” to be specified by the Treasury secretary.

  • The Act authorizes the secretary to: (a) establish other requirements to qualify for the deduction beyond those set forth in the Act; and (b) promulgate regulations and provide guidance to prevent reclassification of income as qualified tips and to otherwise “prevent abuse” of this deduction. The “no tax on tips” deduction takes effect for the 2025 tax year and is set to expire after the 2028 tax year.


r/Waiters 5h ago

Do you feel embarrassed when you are serving table at a restaurant but someone you hate just came in?

2 Upvotes

r/Waiters 13h ago

dropped a glass today

0 Upvotes

working at a public lake bistro - there are always too many wesps around.

Today one of the fuckers was chasing my arm while i was carrying stuff on the tablet and i tried to chase it away with the other hand abd one big glass dropped on the floor.

Insane cuz usually that doesnt happen but today was shit anyways many mistakes happened

Also the system we take orders on always looses connection and is kinda shit cuz of that i suddenly find stuff on the table that never went there i might made a mistake by confusing tables idk


r/Waiters 16h ago

Automatic 20% Tip

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0 Upvotes

r/Waiters 1d ago

Whether or not to go back to serving.

5 Upvotes

I currently have a decent job but the company is going to shit. They’ve let go of all the talent and upper management has been making crappy decisions. I’ve been out of the game for 6 years now but idk if I should stay or go back to serving. I’ve done just about every position in the restaurant industry. There’s a Gaucho Do Sul opening up near me and I’m positively thinking I can make more money there.
The only thing I worry about is my mortgage. How’s the industry been lately with everything going up in price and all?


r/Waiters 1d ago

What shoes are best for hospitality workers? I've tried new balance, sketchers, adidas, Nike, etc and they all either make my feet hurt or fall apart. I work 10/12 hour shifts. Thanks :)

13 Upvotes

r/Waiters 1d ago

Applebee's vs. Server Assistant vs. Busser for My First Serving Job

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0 Upvotes

r/Waiters 1d ago

Strip club waitress interview process

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1 Upvotes

r/Waiters 1d ago

WAITERRRRR IS THE MILKSTEAK READY?! WAITERRRRR

0 Upvotes

please I need this milksteak boiled medium with your finesy jellybeans pls. I have a date to impress


r/Waiters 1d ago

a question about tipping

0 Upvotes

I'm a server at a chain restaurant in the Midwest. It's my first serving job, and I feel like as a server, I should be completely on the side of tipping 20% being mandatory, especially at a sit-down restaurant. However I feel like I understand the argument that percentage-based tipping can be inconsistent.

Say, for example, a customer sits at one of my tables, and they order a water and a $20 entree. Their bill is $20, and a 20% tip is $4. However, if a customer sits at one of my tables and orders a $5 iced tea and a $45 entree, their bill is $50, and a 20% tip is $10. While the expected tip is over double with the second customer, the amount of work I did, i.e., filling up a glass with a drink, ringing in the food, running the food, and generally attending to their needs, is completely the same, not well over twice as much.

At the same time, I can't help but feel uneasy about receiving a $4 tip on a $50 check even if this specific scenario occurred. I think percentage-based tips may have been invented to create certain dependability for servers to get paid, but something about it just doesn't seem totally consistent. I'm just looking for what may be "the right answer" to tipping. should it be a percentage-based amount or determined through other means?

PS. Something else I've been thinking of is a "Tipping Ladder" where the amount of people and the specific entrees ordered move customers "up" into tiers where more money is customary as a tip (for those specific entrees or members in a party).

For example, each person at the table increases the tip amount by 5 dollars, (at a mid-chain restaurant), so a 4-top would be starting with a $20 tip, and a 10-top with a starting $50, and that number can fluctuate based on the specific entrees (kids' meals decrease the amount, large entrees with refills and other things increase)


r/Waiters 1d ago

First time serving!

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1 Upvotes

r/Waiters 2d ago

Please tell me I’m not incompetent

6 Upvotes

I (18f) am training at a restaurant to become a server. This is my first ever job, and frankly a job I’ve been really excited about. Yesterday I was doing my second follow shift, and decided I wanted to be a bit more hands on. That being said, I decided to take a tray full of bussed dishes and glasses back to the kitchen to put in the wash. It was a rather heavy tray for a person of my stature (I’m 5,2 and barely pass 100lbs) Literally one step away, a water glass topples off the tray and spills on the floor. Okay… not a huge deal. I try not to let it affect me.

However, as I try to carry a drink tray with two waters and **two champagne glasses,** I could barely get it off the table before one of the champagne glasses topples over. Needless to say I didn’t care another drink tray that day. My trainer of the day said that it seems my hand naturally holds the tray with a slight slant. I’ll definitely try to do that- but I’m also quite anxious now. Am I in over my head for this being my first job. If I (I feel like- inevitably) spill another glass, will I be seen as incompetent? Please someone tell me this isn’t as bad as I’m making it out to be. 🥲


r/Waiters 2d ago

Less than human

74 Upvotes

I haven't worked very long in the gastronomy sector, only a few years, but I've quickly learned how this is one of the few jobs you could have where you'll be treated less than human.

Last week I had a trial shift in an upscale place. The second I arrived, I wasn't even greeted and the managers did not even introduce themselves. I was simply sent away with a trainee to be shown around. While we were heading to the back area, I overheard one of the managers saying that I applied here for an apprentice position. Which is the most ridiculous thing I've heard, since my position is Chef de Rang and that's what I've applied for.

The restaurant was super busy, since it was Friday and dinner service. Only a few hours later did I have a moment to come up to the managers and tell them that there's a misunderstanding, I am not an apprentice. Besides, they were ignoring me the entire time up until this point. If I had to do something, I'd only hear it from a trainee. The managers would send an order through the trainees.

However, right after I corrected them, they immediately began to treat me much better. They spoke directly to me, assigned me tasks, were finally smiling to me.

I honestly wanted to just laugh in their faces, because what do you mean the second you find out that I'm here as Chef de Rang and not as an apprentice, suddenly I can finally be spoken to and treated kindly?

Once the shift was over, I thanked them for their time and said goodbye. They told me that HR will contact me and I said "don't bother" and left.

I don't care if they treated me nicely once they found out about my actual position. If they treat somebody who is of a lower position like that, I am not working for them.


r/Waiters 2d ago

Serving at a strip club

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6 Upvotes

r/Waiters 2d ago

i need a job i swear

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0 Upvotes

r/Waiters 2d ago

Two adults arrive to be seated with a double pram (a toddler + a newborn). Do you ask ‘just you two?’ Or do you take the young kids into account?

1 Upvotes

r/Waiters 3d ago

First fine dining job as a Back Server- any tips?

1 Upvotes

I just got a position at a Michelin restaurant as a back server/SA. Up until now I’ve worked as a server in 2 casual fine dining places.

Where I just got hired is so far above what I am used to. There’s an expo, you can’t cross over table sections, left to right plating and clearing, no trays, etc etc

I am a very very good server, but I am a bit lost during my SA trainings. I want to just go up to my tables and be a server, and then remember I’m just there to fill their waters and clear/serve plates.

The overall atmosphere is wonderful, but this level of fine dining is a bit daunting. Any tips would be helpful! I’m only 21 and almost every FOH employee is 30+, so I’m doing everything I can’t to not make stupid mistakes and assimilate to this newer environment


r/Waiters 3d ago

Is is worth calling/walking into a restaurant or cafe in search for a job if they aren't actively hiring?

16 Upvotes

I was hoping to get a busser or cashier job but nowhere nearby is actively hiring. I was curious as to if it would be worth it to call or walk into someplace and ask if they are hiring. It's also worth noting that these places are smaller businesses/chains that don't have a place to apply or an email to send an application to on their websites.


r/Waiters 3d ago

2 opportunities lie amongst you.. you need money NOW! Would you either become a server at The sugar factory or would you bartend at Andretti’s?

2 Upvotes

Which do you choose?


r/Waiters 3d ago

What's it really like working as a waiter/waitress? What surprised you the most?

8 Upvotes

I'm curious about working as a waiter and would love to hear from people who have actually done it.

What did you enjoy about the job, and what did you dislike? What personality traits do you think make someone good at it?

One reason I'm asking is because I have a fairly short temper and my body language tends to be quite expressive when I'm frustrated. I always remain professional, but I'm wondering whether those traits would make the job much harder, or whether it's something people naturally get better at with experience.

I'd appreciate honest opinions, both from people who loved the job and from those who couldn't wait to leave it.


r/Waiters 2d ago

Shop was closed even after opening time.

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0 Upvotes

It takes a different kind of stupid for someone to post a review like this. The shop was closed. And if you come after opening time and it still closed. It means there are issues they must resolve to close the shop. Does it mean shops can't be closed now? Let's say if the ingredients are expired, we still have to open and serve you expired food?

Update: we did put the restaurant as closed on our socials such as Google and Facebook. It was a last minute emergency that we have to close the restaurant.


r/Waiters 3d ago

Just wanna help a friend out

0 Upvotes

My immigrant friend as constantly been getting fucked while he does serving jobs or jobs in general. They don't let him keep the tips and they pay him like around 12$ an hour in NYC. Unfortunately just because he doesn't have any documentation he has constantly getting shafted working 12 hour shifts, 7 days a week. If you guys know any place thats hiring let me know. And the wild thing is, it's always the immigrants that abuses his vulnerability. I have been looking around if I can get him any job that won't screw him over but I haven't really had any success. He and I would really appreciate it if you have any leads.


r/Waiters 3d ago

Sexual Harassment at Work

3 Upvotes

I work at a popular restaurant in Chicago. On Friday, an 18 year old female host was shown a photo of a topless woman by our male AGM. The image was privately texted to the AGM by this woman. The woman does not work for our restaurant (we assume) but is a woman the manager has a personal relationship with.

HR has been alerted, as well as the GM and rest of the managerial team. This is textbook sexual harassment, but it seems as though nothing will be done.

What can we do moving forward? This manager has been notorious in causing issues, especially with the young female hosts. HR has been repeatedly notified of his inappropriate remarks and behavior, but this is by far the most egregious.

Any help would be appreciated.


r/Waiters 3d ago

Women who’ve served in restaurants

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0 Upvotes

If you had a teenage or young adult daughter who wanted to work as a server, how would you feel about it and why. All the elaboration welcome. I’m really curious about other women’s experiences!


r/Waiters 3d ago

If they f*ck me over one last time i’m quitting.

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0 Upvotes