By understanding your obligations concerning tip income and keeping meticulous records, you can ensure compliance with tax regulations and avoid issues with the IRS. Being proactive about your reporting can help you manage your finances more effectively throughout the year.

Being self-employed offers many perks, but it also comes with unique tax responsibilities. By staying organized, understanding available deductions, and seeking professional help when needed, you can manage your taxes effectively and potentially save money.

A lateral move can offer several financial and professional benefits — along with some risks worth considering.