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Jay Jennings Veteran user Scottsdale, AZ 332 Posts |
A monetary gift is not taxable income, but tips are taxable income.
Which might be a reason why you shouldn't write "Tips" on a container in front of your pitch. But that's just theory because I'm not a busker (yet). What do you professional buskers do about the whole tax thing? Just curious. Jay Jennings
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rockwall Special user 762 Posts |
In the eyes of the IRS, I'm 99% sure that they consider it all taxable. I don't think you'll get a lot of responses about how much people actually claim for what I would think are obvious reasons.
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Paddy Inner circle Milford OH 1571 Posts |
This is a Catch 22 for anyone living on tgips as any restaurant server will tell you. If you claim too little, not o0nly will the IRS be P.O'ed at you, but if you try to get a loan for a new car or anything else you can't. If you claim a high amount, that will help you in financial terms, but you better pay on time with the government division of thieves. Your choice, but make SURE that your bookkeeping will pass the IRS auditors.
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Pizpor Elite user 476 Posts |
If granny puts $5 in your birthday card, that's a gift. Working for tips is income. If you get dodgy with what you claim versus the lifestyle you live, you'll have some explaining to do. Or, just be honest and pay your taxes - welcome to society.
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Paddy Inner circle Milford OH 1571 Posts |
I think a better answer to this is; If they THINK you owe taxes, even if you're buried with your wallet the IRS will dig your butt up to get what they think is theirs. If you claim poverty income and drive a new car every year, you will get the official U.S. Government issued SCREW. BTW I know from experience.
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Mr. Mystoffelees Inner circle I haven't changed anyone's opinion in 3623 Posts |
You are exactly correct, Paddy- even taxes are taxable these days!
Also known, when doing rope magic, as "Cordini"
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HerbLarry Special user Poof! 731 Posts |
Loose lips sink more than ships.
You know why don't act naive.
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ChrisG Elite user Batavia, Ohio 448 Posts |
Working outside the United States you are not required to pay Federal Income taxes if you reside there for 12 months or more. You may be required to pay State Income taxes depending on the state in which you live.
My son worked 3 years in Kosovo providing security for the US Government. He paid taxes to the State of Ohio. I mis-read this. I thought it said out side the US. Sorry
"Consensus is the negation of Leadership"
M. Thatcher |
writeall Special user Midland, Michigan 930 Posts |
My income is completely 'off the books', not from busking, but nearly as untraceable. I claim it all. There are a few good reasons, other than fear.
I want to show income for Social Security. I want to be able to show lenders my income on a tax form. It's the one time of year I get to feel patriotic. Oh. And fear of prison. |
JordanB Special user dallas, tx 626 Posts |
Busking money is taxable in the eyes of the IRS. I suggest that anyone who deals extensively in cash keep very good and consistent records. The IRS has several methods of "reconstructing" income when they think there is under reporting. I did some research on this topic for one of my graduate tax classes earlier this summer.
Also, I would like to correct ChrisG...the US taxes worldwide income on US citizens. There is a deduction for foreign income if you meet certain criteria. Part of my job involves dealing with the tax situation for several of my companies expatriate employees for those employees who work in China, Mexico, Japan, etc. They are over there for years at a time and still owe significant US income tax. As far as I know the US is the only country in the world to tax worldwide income. |
The Magic Cafe Forum Index » » The side walk shuffle » » Busking Proceeds in the US are Not Taxable (Y/N) (0 Likes) |
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