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Labor Day largesse

September 2, 2006

Here’s a Labor Day story to warm the heart of every working Jane and Joe out there.

Big_tip_recipient Cindy Kienow has worked the past eight years as a bartender at Applebee’s in Hutchinson, Kansas. Cindy isn’t saying what she makes at that job, but I suspect the $10,000 tip she got a couple of weeks ago represents a sizable portion of her annual salary.

You read right. Ten thousand. A 10 grand, 10-comma-zero-zero-zero, 10k tip. On a $26 check.

Don’t you feel a little stingy for only adding 15 percent to your last restaurant tab?

The big tipper is a regular customer who usually eats his meals at the end of the bar Cindy works. She said she always chats with the man about current events or the weather, and he has always been a very good tipper, typically leaving around 50 percent of the bill.

But she didn’t realize just how much her conversation was appreciated until the huge tip showed up on his latest meal’s credit card charge slip.

The restaurant is completing verification that that the $10,026 charge will go through. The company also is keeping the customer’s identity confidential, at his request.

Maybe the guy’s leaving town and wanted to give Cindy a nice parting gift. Maybe he just had a really good day and wanted to share. Maybe he’s getting a divorce and wanted to get rid of some dough before the attorneys and future-ex could get their hands on it.

Whatever the reason, when the charge clears, Cindy will get her money. Previously, the largest tip she’d ever received was $230. Not bad, but …

She’s already got plans for the unexpected cash: a new Jeep, a trip to Vegas (with her luck, she’s gotta go!) and probably sharing a bit with her parents.

But she also better set aside some for the IRS.

Yes, tips are taxable. In fact, the IRS in July instituted a new tip reporting system for employers in the food and beverage industry to help ease some of the administrative issues involved with reporting tip income. You also can find in this story what any worker who depends on tip income needs to know about taxes on the money.

You can watch Cindy’s interview, which includes a shot of the receipt with the big tip, on the CBS Early Show here.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • There is much more bigger tip than Cindy’s. Melina Salazar got $50,000 tip from an elderly gentleman named Walter M. Swords from his last will and testament. Swords went Home to be with the Lord on July 15, 2007 at the age of three days shy of 90 and he has no family of his own.

  • There is much more yet another bigger tip than Cindy’s. Kent Eberhardt got $50,000 tip from an elderly gentleman named Jack H. Lemons from his last will and testament. Lemons went Home to be with the Lord on June 14, 1989 at the age of 79 and he has no known family of his own. There is much more yet another bigger tip than Cindy’s. Colin Gilbert gave Thelma Morman (or Norman) $2,400 tip (over $14,000 in today’s money) on his will and he has no known family of his own and God bless.

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