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What I think does not matter as much as what the interior Revenue Service thinks, and also the IRS position is crystal clear: Tips are taxable income.
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According towards the contents of her assessment, she was required shell out an extra R32000 (R=South African Rand or currency) on surface of what she normally paid during earlier years - give of take 1 or 2 transfer pricing hundreds. After checking her documents, I asked her if she had earned any extra income different from her teaching and a lot of No!
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