The answers i am getting at the club are all over the place. I have been in trouble w/ the IRS before and I don't want that again! I can't afford an accountant.
Any accountant types out there who want to help a girl out :)?
2006-10-05 01:45:57 · 11 answers · asked by Judy L 4 in Business & Finance ➔ Taxes ➔ United States
I'm a CPA who actually has a stripper as a client (one of my favorites I might add). Everyone is correct in saying that you are supposed to claim any and all tips. I assume you don't receive a paycheck, its most likely 100% tips. If so, you are also considered an independent contractor, which means you are self employed and not an employee of the club. The drawback to this is that you have to pay not only income tax on your earnings, but also FICA and Medicare (Self Employemnt Taxes). The good thing is that you can deduct expenses. Shoes, costumes, etc. are deductible. You can also deduct your mileage at 44 1/2 cents a mile for 2006 (driving back and forth to your job in this case). I can't advise you to under report or fail to report your tips, but I can say that it is done and would be difficult to prove by the IRS in an audit. I would say report the income and be more liberal in your deductions (ie: be as creative as possible as long as you feel you could make a good argument for the deduction). Hope that helps.
2006-10-05 03:08:03 · answer #1 · answered by Jeff C 2 · 5⤊ 0⤋
I'd contact an accountant especially since you've had IRS trouble before.
Do you get paid a salary at all? If so then I'd estimate the tips based on the salary and report that. If you're just getting tips, I'd probably report about half of it, but whatever it is it has to be a reasonable amount to satisfy the IRS.
Your best bet is an accountant.'
2006-10-05 01:55:08 · answer #2 · answered by Bluealt 7 · 0⤊ 1⤋
Legally you're supposed to report all your tips. I'd tell them to go hang except you've been in trouble before and they may be keeping an eye on you. Usually what they do is take an average of what the other strippers are reporting and nail you with that.
Now, even an average can be unfair, 'cause say maybe you suck at stripping and nobody tips you?? It could happen. And maybe you aren't as friendly as some of the other girls and nobody tips you. Maybe the whole world hates you and thinks you're ugly and nobody tips you, breaking down at this point may help bring some believability to that little scenerio. Hey, I would believe you, of course they didn't hire me.
If you are real concerned you would have to go with an average.
2006-10-05 02:04:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
The other answers are good - you may be a bad stripper. If audited just send the IRS a photo of your grandma and say that is you. One more thing about not being your annual social security taxes on tip income - when you retire do not complain about smaller social security checks based on your low tip income.
2006-10-05 07:54:07 · answer #4 · answered by spicertax 5 · 1⤊ 0⤋
Legally you should report all of them.
Realistically, the IRS will never know how much you actually earn in tip income, but they will have a general idea. You might consider reporting the average--what does the average stripper earn in tips?
Rick
2006-10-05 01:54:47 · answer #5 · answered by Anonymous · 1⤊ 1⤋
The federal regulation states that you simply need to record a minimum of eight% of your income, which as a rule seems to be a million/two to a million/three of what you could honestly make in pointers. Unless the volume of pointers that you simply obtain on bank cards is larger than eight% of your complete sale., Then you must declare a minimum of that quantity, due to the fact there's a paper path to that. But usually, no, waiters DO NOT declare one hundred% in their pointers, with well cause, in my view.
2016-08-29 07:34:54 · answer #6 · answered by ? 4 · 0⤊ 0⤋
You are legally obligated to report 100% of your tips and you're supposed to keep some type of record to substantiate the amount that you report to the IRS. Should the IRS attempt to audit you, remember that the burden of proof is on you.
2006-10-05 05:13:03 · answer #7 · answered by J L 2 · 1⤊ 2⤋
The law says you are to report ALL income. I am a radical and a maverick so, I say, if the IRS wants to know about cash, they better be standing there when I get get paid in cash.
2006-10-05 02:41:52 · answer #8 · answered by bigmikejones 5 · 0⤊ 1⤋
You only have to report it if its over a certain amount depending on your situation...I say research that and always came under the amount that you have to report.
2006-10-05 01:58:42 · answer #9 · answered by ♀Mañana♥^¥ ♪☺↕♫©⢠size= 6 · 1⤊ 1⤋
When I waited tables we only had to assume responsibility for the money that was in our paychecks. We didn't report our tips. Techinically, if it's cash, they can't find it. Because you can say you never had it. Right?
2006-10-05 01:55:22 · answer #10 · answered by BeezKneez 4 · 0⤊ 2⤋