Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Revision as of 19:15, 18 October 2026
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This means that your chosen non-taxable pace of two.6% would be the same return as a taxable rate of 5%. That was derived by multiplying 5% by 72%. So any non-taxable return greater than 3.6% would be preferable in order to some taxable rate of 5%. The employer probably pays the waitress a minuscule wage, which is allowed under many minimum wage laws because she gets a job that typically generates practices. The IRS might therefore debate that my tip is paid "for" the business. But I am under no compulsion to leave the waitress anything.
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