golf clubs

Inside the Law: Caddie Tip Taxes

July 17, 2018 - 3:30 am

By Amy E. Feldman, Judge Technology Solutions​

PHILADELPHIA (KYW Newsradio) -- Spending the summer as a golf caddie?  Some records — of your income — you need to be keeping. 

Unlike the movie Caddyshack, where you’ll get nothing and like it, if you’re working as a caddie this summer, you’re going to get something, hopefully a lot of money. 

If you’re employed by the golf club, you’ll get a paycheck, and the club should deduct taxes from your salary. You are also supposed to report all the tips over $20 you get to the club so that they can deduct taxes from the tips too because tips are taxable income, and by law those tips are subject to federal income, social security, and Medicare taxes.  

If you are not employed by the club, but are an independent contractor with the club who is hired and paid by the individual golfer, the club isn’t liable to withhold your taxes, but you still are, so you need to keep a log of fees you get from the club if you make more than $600, plus all the tips you get, including non-cash tips like tickets to sporting events and report them on your self-employed tax return.  

The complete consciousness you receive on your deathbed is not taxable, so you got that going for you. Which is nice.