Why does the government consider tips income at tax time but not income in any other situation?
How do they get away with having this both ways? You are expected to claim all you tips as income when paying your taxes but if you find yourself on unemployment or applying for a loan or mortgage they turn it around and say your tips do not count as income. A smart lawyer should be able to tear this apart if it ever came down to being sued for back taxes on unclaimed tips.
They do not consider it income at all times. Only when it is to their advantage. As for a loan, if the government says your tips are income then financial institutions that abide by GOVERNMENT rules should not be allowed to say it is not income.