alot of people tell me they dont, they said that its more for like bars and stuff. is this true?
2007-02-04 17:54:56 · 12 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
It's for wherever tips are earned. The IRS wants to know about every penny you receive, my dear! My impression is that tips are generally under-reported, but if you work in a profession that is normally tipped, you are going to be obvious if you report no tips at all. It is my understanding, however, that the tip jar on the counter form of tipping does not yield much money. A rather low report of tips would probably be accepted.
None of this is to imply I think you should lie to the IRS, but rather to help you in case you have not kept accurate records of what tips you have received.
2007-02-04 18:01:27 · answer #1 · answered by auntb93again 7 · 0⤊ 0⤋
Yes! You MUST report ALL of your tips to your employer in any month where you receive more than $20.00 in total tips. Your employer has the necessary forms. If you have any tip-outs, you must report them on that form along with the name of the recipient.
Failing to file your tips accurately with your employer is BEGGING for an audit. Employers are requied to file tip reports with the IRS. Their employees' tax returns may be flagged for compliance checks.
Submitting a tax return with a W2 from Starbucks (or any other employer where tips are common) without any tips claimed is a large red flag unless your occupation shows that you would not likely receive tip income -- corporate office workers, maintenance staff, etc.
The IRS has been clamping down on service workers who fail to accurately claim their tips. If you fail to report them to your employer when received but claim them on your tax return you are subject to a 50% penalty on the SS taxes owed on the tips as well as a non-compliance penalty.
Anyone who advises you to not report your tips is a fool. They're trying to cover their own @$$ for failing to claim their own; do NOT be part of someone else's problem!
2007-02-05 07:43:48 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Any service industry such as waiter, waitress, bartender, hairdresser, delivery person, is supposed to report tips, if they are very low and not a regular occurance some do not, but legally they are supposed to report tips as income.
2007-02-05 01:58:44 · answer #3 · answered by nowment 2 · 0⤊ 0⤋
Any job that has tipping as part of ones income is suppose to report it. If not it is tax evasion. Perhaps in the future as the goverment (big brother) can micro manage your life better they will catch you. In the mean time just keep ripping them off.
2007-02-05 02:01:50 · answer #4 · answered by Anonymous · 0⤊ 1⤋
You are required to. If you don't and you're working in a job that normally gets tips, you increase your chances of being audited.
A lot of people file illegal things on their taxes. Doesn't mean that you should.
2007-02-05 13:11:01 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
It's a personal thing and such a small amount. I wouldn't worry about it. TIPS (To Insure Prompt Service) aren't given to you fairly anyway and I know you put up with a lot of smart a** people who can't figure 20% of anything.
2007-02-05 02:04:35 · answer #6 · answered by Anonymous · 0⤊ 1⤋
You shouldn't report the tips you make in starbucks. As it is you don't get paid enough.
2007-02-05 01:59:43 · answer #7 · answered by benzeeno619 3 · 0⤊ 1⤋
Legally, they should. Anyone who makes any kind of tips--from strippers to delivery people to waitstaff--is legally obligated to report those earnings.
2007-02-05 01:58:16 · answer #8 · answered by artemisaodc1 4 · 0⤊ 0⤋
You have to be nuts to declare you tips. If your tips get excessive, only declare a little bit.
2007-02-08 15:50:45 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I wouldn't. Especially if you make a buttload. Honestly, who is going to know how much cash strangers give you. If you report too much you are screwed.
2007-02-05 01:58:56 · answer #10 · answered by queensassey 4 · 0⤊ 1⤋