Home > Community > Work in U.S. ＞ Tax & Salary

Technically, you have to pay tax for the tip.  There is a field for tipping on the tax file.

However, most of servers don't write it down, and don't pay it.

Because, tip is a CASH, so there are no record for trace it.

Same reason, the store owners who receives the CASH ONLY, 

Technically, they have to count that CASH as an income,

however they file less income because there is no record of trace CASH.

It's more like MORAL issue, but

That is an one reason some store preferred to accept CASH ONLY. 

Tips are taxed by law. However, I've seen it where the owner does not report taxes on tips. Personally, I've never worked at a restaurant where tips were NOT taxed.