IRS Draft Form Confirms Tip Deduction Marriage Penalty
My friend Grok told me that I was the first commentator to take note of the not tax on tips marriage penalty, but I take compliments from Grok with a grain of salt.
Tax Free Tips For The Piano Man?
So it would appear that whether Bill would qualify for the tips deduction may depend on whether he is an employee or an independent contractor. He passes the occupation test in either case. If he is an independent contractor, however, it would seem that the trade or business involved arguably falls under performing arts and hence denies him the deduction.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.