{"id":735592,"date":"2026-06-14T05:34:18","date_gmt":"2026-06-14T05:34:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/735592\/"},"modified":"2026-06-14T05:34:18","modified_gmt":"2026-06-14T05:34:18","slug":"irs-exempts-bike-couriers-and-taxi-drivers-from-taxes-on-tips-cycling-west","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/735592\/","title":{"rendered":"IRS Exempts Bike Couriers and Taxi Drivers from Taxes on Tips – Cycling West"},"content":{"rendered":"


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By Charles Pekow \u2014 Earn income as a bicycle courier or bike taxi driver? If your clients pay you anything above the agreed-upon fee, you won\u2019t have to pay taxes on the difference. The Internal Revenue Service (IRS) issued final rules governing the no-taxes-on-tips legislation, which includes these categories of workers among those qualifying for the income exemption. The IRS limited the exemptions to occupations that traditionally receive tips, preventing people from reclassifying ordinary income as tips \u2014 you don\u2019t tip your doctors, lawyers, or accountants.<\/p>\n

\"\"<\/a>Bicycle courier on Oxford Street, London. Creative Commons CC BY-SA 3.0<\/a> Attribution-Share Alike 3.0 Unported<\/p>\n

A tip qualifies as tax-free if given voluntarily \u2014 a mandated service charge doesn\u2019t count. Business owners and the self-employed don\u2019t qualify. The income is only tax-free if the business and employee comply with all applicable laws, including licensing.<\/p>\n

Customers can leave a qualifying tip by cash, credit or debit card, check, or even casino chips. But if a customer leaves you anything not readily converted to cash \u2014 tickets, services, free meals \u2014 you owe tax on the value.<\/p>\n

Details at https:\/\/www.govinfo.gov\/content\/pkg\/FR-2026-04-13\/html\/2026-07104.htm<\/a>.<\/p>\n

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(Visited 20 times, 20 visits today)<\/p>\n


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\n Previous articleQuick Shot Bike Cartoon: Jekyll & Hyde<\/a> \"Charles<\/a><\/p>\n

Charles Pekow is an award-winning Washington correspondent who has written about bicycling for years in publications such as the Washington Post, Bicycle Times, Dirt Rag, SPOKES, etc. as well as Cycling West\/Cycling Utah. He also writes frequently on environmental issues and beer, among other topics. Weather permitting, you’ll find him most weekends and some summer evenings astride a bicycle in a park. He is also a charter member of the Rails-to-Trails Conservancy.<\/p>\n


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