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Taxes on tips?


haardshah234
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Hi guys, I just completed an order and the really humble customer gave me a tip (5$ to be precise). My question is: Will tax be cut from the tip as well? because usually 21% of my earnings are cut from every order (20% fiverr commission+ 1% Tax). On the Dashboard it says Earnings in September: 11$, {the order was of 15$ (excluding tax) and according to that I should get 11.8$, rounded off on the dashboard as 11$}. But what about the rest 5$ given to me as tip? will I get them completely or will 21% be cut off from it too?

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1 hour ago, haardshah234 said:

the total is 20$ so cutting 21% out will still give me 15.8$ so why does it say 11$ earned then? and isn't a tip something given exclusively given to the worker?

 

If Fiverr didn't charge 20% on tips, a lot of sellers would simply try to trick the system by charging low rates for their gigs and asking buyers to pay in tips instead. 

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9 hours ago, smashradio said:

If Fiverr didn't charge 20% on tips, a lot of sellers would simply try to trick the system by charging low rates for their gigs and asking buyers to pay in tips instead. 

but still, it should be something like Earnings in November: 14$ right? (11$ from the gig + 3.95$ from the tip)

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17 hours ago, smashradio said:

If Fiverr didn't charge 20% on tips, a lot of sellers would simply try to trick the system by charging low rates for their gigs and asking buyers to pay in tips instead. 

Yes, that also a reason Fiverr charge on tips.

What if a buyer won't pay on tips? Just a question. This is also a seller risk to rely on tips.

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10 minutes ago, tousifakrams said:

Yes, that also a reason Fiverr charge on tips.

What if a buyer won't pay on tips? Just a question. This is also a seller risk to rely on tips.

Yeah exactly, That buyer himself/herself can scam you lmao. And besides, I don't think there's something wrong in asking for a tip. I mean, don't some Uber drivers and other such service providers ask for a 5-sstar review? Similarly, I don't think requesting for a tip is WRONG, it's just that it shouldn't be forceful, but rather the buyer's own wish.

And, the tips we pay to Waiters, Cab Drivers etc. go DIRECTLY and COMPLETELY to the individual and the company/restaurant management have no right to take any part of it I believe. Thoughts?

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