[GrandJediMasterYoda]

Hmmm...Well she is happy now until the Marxist run IRS comes knocking.

[bert]

She received two payments

A taxable tip and a non taxable scholar ship.

[vpintheak]

Dang right! Don’t report that, just like the obomacare people say!

[SamuraiScot]

until the Marxist run IRS comes knocking

Nope, those crafty Christian males have them beat pretty good. The $5K isn't income. It's a gift, especially since it's written directly to the college. That amount isn't taxable to her, or anybody. And I doubt the $1K written directly to her will get her into a bracket where she'll even have to file, on a waitress's wages—although, with her energy, she may surprise me.

And splitting the $100 with other employees? That will really get the IRS gnashing its teeth in frustration. Her only income from that is what she kept.

That girl sounds like an angel.

[Vermont Lt]

It could be argued that this was a gift, not a tip. And the check was made out to the school. Never passes through her hand. Again, a gift.

Tell the IRS to screw.

[texas booster]

The IRS minions will be furious that a private school only charges $5,000 for a year of schooling - bet someone suddenly decides to check their accreditation.

[LRoggy]

Gifts under $13,000 are tax-free; also if the check was made out to the school instead of her it has no tax implication at all.

[ELS]

Well she is happy now until the Marxist run IRS comes knocking.

I'm neither a CPA or a tax lawyer, but I think gifts are non-taxable.