The tips that a waitress earns, are they supposed to report those on their tax return and what documentation will they need to show how much in tips they made for the year?
2007-03-05 08:17:28 · 8 answers · asked by Jennifer W 2 in Dining Out ➔ Other - Dining Out
It is the law to claim tips. However the only ones they can track are the ones off the credit cards....
When I clock out it asks me what my tips are (which would be what I am claiming), and I Only put the total amount from the credit cards...no one can be certain how much cash tips you made, so why claim more if more will be taken out? And they can't make you claim a percent of your sales because to their knowledge, your tables may not have left any cash tips.
2007-03-05 11:27:19 · answer #1 · answered by Heathertogo 3 · 0⤊ 0⤋
If you report your tips to the place that you work at the end of each shift for example, you should get a W-2 from that employer telling you how much you made and how much should be reported on your taxes.
2007-03-05 10:09:11 · answer #2 · answered by Jman 3 · 0⤊ 0⤋
You are supposed to report all of your tips as income. Some restaurants report 10-15% of your sales as income, and you are taxed. Which is why, if you are making $2.13 an hour, you may get a paycheck for $0.00. Most servers make sure that they claim at least any tips from debit cards and credit cards. Those are trackable.
2007-03-05 08:22:46 · answer #3 · answered by kimpetuous 3 · 1⤊ 0⤋
At Red Lobster the system in the computer will not let you claim less than 10% of your sales, however it is required to claim all of your tips. Now, there is nobody there to make you. Ultimately it is the servers choice if they want to claim all of their tips.
Information of your tips will be on your W-2 for taxes, but it is suggested you keep tract, in case of ever being audited, which is why it is mandatory for managers and the company to tell you to claim all of your tips!
2007-03-07 00:23:39 · answer #4 · answered by Colleen Cook 3 · 0⤊ 1⤋
Yes, they are supposed to report it, and as for documentation, if you keep a daily log of your own, that helps, plus, talking to the manager of the restaurant to get documentation should be available too. Take care.
2007-03-05 08:26:54 · answer #5 · answered by SAK 6 · 0⤊ 0⤋
Tips are taxible. The Irs. taxes what they estimate an employee earns. So they will pay taxes on tips whether they earn them or not.
2007-03-06 16:34:15 · answer #6 · answered by curious connie 7 · 0⤊ 0⤋
There is some sort of a tip sheet that you have to keep records all year on, but most wait staff fib a little on that.
2007-03-05 08:19:38 · answer #7 · answered by Anonymous · 1⤊ 0⤋
not everyone reports
like they should
2007-03-05 09:41:54 · answer #8 · answered by delores4830 3 · 0⤊ 0⤋