Wait im confused. What if i have to pay for parking at different client sites? Im a w2 employee but i travel to different locations for my job during the day?

Your coworker is likely making a mistake that could get him in trouble with the IRS. As others have confirmed, W-2 employees cannot deduct parking expenses at their regular workplace - this has been the case since the 2017 Tax Cuts and Jobs Act eliminated unreimbursed employee expense deductions. I'd suggest having a friendly conversation with your coworker about this. He might be confusing old tax rules (pre-2018), or maybe he has some 1099 income on the side that he's legitimately deducting parking for. Either way, if he's deducting regular commuting parking as a W-2 employee, he's setting himself up for potential issues if audited. Your best bet is to ask your employer about pre-tax commuter benefits if they offer them - that's the only legitimate way for W-2 employees to get tax savings on parking expenses. Don't risk taking deductions you're not entitled to!

To answer the original question with some actual data points: - Top 1% of earners (making $540k+) pay about 40% of federal income tax - Top 10% (making $145k+) pay about 71% of income tax - Bottom 50% (making below $41k) pay about 3% of income tax BUT here's where it gets interesting - when you include payroll taxes (Social Security/Medicare), the picture changes because those taxes hit middle and lower incomes harder due to the cap. The problem with these discussions is everyone focuses on federal income tax, but that's just one piece. When you factor in state taxes, property taxes, sales taxes, and other fees, the overall tax system becomes much less progressive.

I think we're missing something important here - it's not just about how much each group pays, but what we get in return! I pay around 28% of my income in various taxes (I calculated it last year), and I'm constantly wondering where it all goes. Other countries with similar or higher tax rates have universal healthcare, affordable college, better infrastructure, and longer vacation time. Americans feel overtaxed not just because of the amount, but because many don't feel they're getting good value for what they pay.

Just thinking outside the box - could you set up a separate Venmo/Cash App account specifically for work tips? Maybe label it clearly like "[Company Name] Valet Tips" so it's obvious it's not your personal money? Might make the accounting cleaner at least.

I work for a tax preparation firm and see situations like this regularly. You're absolutely right to be concerned - this setup is creating a significant tax liability risk for you personally. The fundamental problem is that payment apps report based on the account holder's SSN, regardless of the actual ownership of the funds. So you'll likely receive 1099-K forms showing the full amount of tips as YOUR income, even though most of it gets distributed to others. Here's what I recommend: First, immediately start documenting EVERYTHING. Create a spreadsheet tracking every digital tip received, the date, amount, and exactly how much went to which valet (including yourself). Keep screenshots of all transactions and payouts. This documentation will be crucial if the IRS questions anything. Second, you need to have a serious conversation with your employer about restructuring this arrangement. Ideally, the company should either set up a business account for receiving digital tips OR formally document that you're acting as their agent in collecting these payments. Without proper documentation from your employer, you could be personally liable for taxes on money that was never really yours. The $600 reporting threshold mentioned in other comments makes this even more urgent. With $4000/month flowing through your accounts, you're looking at potentially owing taxes on $48,000+ annually that you never actually kept. Don't wait on this - the longer the current system continues, the bigger the potential tax problem becomes.

call your local tax advocate! they might be able to help speed things up

Been through this before - typically takes 3-4 weeks for the paper check to arrive after rejection. You can also track it on the IRS website using "Where's My Refund" tool. Just make sure your address hasn't changed since you filed!

Has anyone actually had their OIC accepted when they couldn't provide spouse info? My tax guy told me they almost always reject these applications if you're missing any info they ask for.

I went through something very similar about 2 years ago - owed $28k and had been separated for 6 years but never officially divorced. My ex also refused to provide any financial information or cooperate at all. Here's what worked for me: I gathered every piece of documentation I could find to prove we were living completely separate lives. This included different addresses on utility bills, separate car insurance policies, different phone plans, bank statements showing no shared accounts, and even testimony from neighbors who could confirm we hadn't lived together in years. The most important thing was being completely honest and transparent with the IRS. I submitted a detailed written statement explaining the entire situation, including my attempts to contact my ex (I kept screenshots of unanswered texts and emails). I also included an affidavit stating that to the best of my knowledge, she had minimal income, but that I had no way to verify this. My OIC was initially put on hold for additional review, but after about 4 months, it was accepted at about 25% of what I owed. The key was showing that I made every reasonable effort to get the information but couldn't due to circumstances beyond my control. Don't give up - the IRS does have procedures for situations exactly like yours. Just make sure you document everything and be completely truthful about your attempts to get her cooperation.