Is it legal to give non cash tips to waiters and other servers and what are the consequences in terms of taxes?
<p>I wasn't sure I should ask this under Law or Personal Finance &amp; Money. I was wondering what the rules are regarding non-cash tips in the United States. By non-cash tips, I do not mean using a credit card, but rather giving a tip using something of value other than USD: movie tickets, silver coins, etc. </p>

<p>Additionally, how is that treated in terms of reporting and taxes?</p>

<p><a href="https://www.irs.gov/pub/irs-pdf/p531.pdf" rel="nofollow noreferrer">https://www.irs.gov/pub/irs-pdf/p531.pdf</a></p>

<p>Page 2:</p>

<blockquote>
  <p>The value of noncash tips, such as tickets, passes, or
  other items of value, is also income and subject to tax</p>
</blockquote>

<p>Page 5:</p>

<blockquote>
  <p>What tips to report. Generally, you must report all tips
  you received in 2016 on your tax return, including both
  cash tips and noncash tips. Any tips you reported to your
  employer as required in 2016 are included in the wages
  shown in box 1 of your Form W-2. Add to the amount in
  box 1 only the tips you did not report to your employer</p>
</blockquote>

tax-law currency