At the end of the night I give the cashier what I owe from deliveries. I have never been asked how much I make in tips etc, but do I report this to the IRS or to my work?
2007-02-19 08:49:17 · 4 answers · asked by PlasticTrees 2 in Business & Finance ➔ Other - Business & Finance
The technical answer is yes, you report it as income to the IRS. The reality is that since its cash, its very hard for the IRS to track that down. I suspect that many of your contemporaries dont report it. If the IRS does find out about it somehow, then they will wack you with penalty fees and back interest on the tax you owe.
Of course, I am not advising you to skirt the IRS regs, just telling you some well known facts.
2007-02-19 09:00:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Legally, yes any job where tips are received, you are required to report them as earnings. If you don't this is tax fraud, for more info on this contact your Tax Adviser or the IRS at IRS.gov
2007-02-19 09:00:43 · answer #2 · answered by topdawgco97 4 · 0⤊ 0⤋
depends on how much you make an hour. if it is at least minimum wage then no, if it is not then you do. waitresses have to report tips to the irs because we only make about 2 dollars an hour.
2007-02-19 08:58:29 · answer #3 · answered by Angel D 2 · 0⤊ 1⤋
No. That's between you and the customer. I bet cab drivers never declare their tips, or barmaids, waiters, etc.
2007-02-19 08:55:11 · answer #4 · answered by Taylor29 7 · 0⤊ 2⤋