We pay the busboys,bartenders,hostesses,dishwashers,expos,and backwaiters 3.5% of our total sales every day. Some times it comes out to be $45 a shift. Is there anyway to claim this as a business expense. It comes right out of our tips for the day.
2007-02-18 10:25:36 · 4 answers · asked by Casey V 1 in Business & Finance ➔ Taxes ➔ United States
The amount of tips you don't actually receive should not be included in your income to begin with. If the income was never included, you can't deduct it.
2007-02-18 10:36:30 · answer #1 · answered by STEVEN F 7 · 0⤊ 2⤋
No, you cannot claim tip-outs on your tax return.
You must adjust your tip-outs on the tip report that you file with your employer every month. The tip-out MUST list the name of the person you gave the money to, and their report must show the tips received from you.
If you failed to adjust your tip-outs on the employer report, the income (and tax liability for it) is yours and yours alone.
2007-02-18 18:35:24 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Just claim the net amount of your tips.
2007-02-18 18:34:06 · answer #3 · answered by Anonymous · 1⤊ 1⤋
no
2007-02-18 18:28:37 · answer #4 · answered by The H 3 · 1⤊ 0⤋