Starbucks Baristas: The daily grind
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Digital Tip Taxes: advice from the TaxMan (self.starbucksbaristas)
submitted by iwantmysharpieback
Okay, so there's lots of confusion here. But from my experience of doing my own taxes for 20years, having a CPA that specialized in business taxes as a parent, and google...(disclaimer: I'm in Ca, and not a CPA myself)
Your tips received are "taxable income". This is true of almost any money you get in life. Small amounts of income may be taxed, but not at the full rate.
Starbucks will be declaring your digital tips and withholding the applicable taxes on them. Your in store cash tips will still be distributed as usual.
Tips are (US federal) ONLY taxed if it's more than $20 per day. (Edit:per MONTH) Because your digital tips are already covering your butt, your cash tips are essentially untrackable by the IRS. Therefore while you 'should' manually declare your cash tips, you actually don't 'need' too.
Tldr: (edited) Don't bother with tracking them.
Your tips received are "taxable income". This is true of almost any money you get in life. Small amounts of income may be taxed, but not at the full rate.
Starbucks will be declaring your digital tips and withholding the applicable taxes on them. Your in store cash tips will still be distributed as usual.
Tips are (US federal) ONLY taxed if it's more than $20 per day. (Edit:per MONTH) Because your digital tips are already covering your butt, your cash tips are essentially untrackable by the IRS. Therefore while you 'should' manually declare your cash tips, you actually don't 'need' too.
Tldr: (edited) Don't bother with tracking them.
iwantmysharpieback [OP] 10 points 2y ago
This is also why I always tip cash at restaurants, pick-up counters, etc. My parental said, quote "tips are dumb, but they're yours. Just declare the minimum and you're good"
astivana 5 points 2y ago
Uhhhh according to the IRS website, tips aren’t taxed if they’re under $20 per month, not per day.
iwantmysharpieback [OP] 3 points 2y ago
Whoop. I read that wrong. Saw the "report monthly" part and guess my brain went wild on the rest. The rest of the advice stands. Digital tips are still being declared on our behalf, so I'm not going to bother updating mpi. (Our tips are also abysmal to start so I'm not worried)
iwantmysharpieback [OP] 1 points 2y ago
I updated. Thanks for the catch!
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