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You deliver pizzas. You make minimum wage, but get lots of tips, too. Nothing flashy. A couple of bucks here, a five there, occasionally a big fat zero, but all those tips (check this out for more info on reporting your tips) add up, maybe as much as $150 a week. It's pretty tempting to pocket it without paying any taxes. After all, who's going to know?
For starters, you are. But that's not the point. The fact is not all that money belongs to you. Some of it is needed to pay for government services.
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Think about it this way: Government services are like the toppings on a large pizza. The more toppings you order, the more you have to pay for the pie. As we all know, the great American "pizza" has a lot of toppings; roads, defense, police, hospitals, judges, schools, parks and that makes for one hefty check.
If you don't pay taxes on your tips, someone else (like your friends or your parents) will end up picking up the tab for you. And we all know what friends think about friends who don't pay their fair share. (Do the names Sponge, Parasite, and Dweeb ring a bell?)
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| The point is: Make as much dough as you can, but pay for your slice of the pie. Now there's a recipe for becoming a big cheese. Remember, when you declare your tips as earned income, it's called voluntary compliance.
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1. "Nice dog. Does he always draw blood like that?"
2. "Yes sir, our pies always come with a slice missing. We call it 'quality control.'"
3. "We deliver anywhere, that's our pledge. Only filled up twice coming out here."
4. "I know you didn't order anchovies. Consider them my treat."
5. "Pizza? Fattening? No ma'am. Diet food of the gods."
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