give sources
2007-05-06 07:09:41 · 5 answers · asked by iluvhipos 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
Yes
Source: IRS
2007-05-06 09:30:06 · answer #1 · answered by professorc 7 · 0⤊ 1⤋
Absolutely! You are required to notify your employer of all tips received in any month that you receive $20 or more in tips. Employers are required to withhold taxes from your base wage based upon the base wage and the tips reported.
If you fail to notify your employer of any tips received, there is a 50% penalty tax on the Social Security and Medicare tax on the unreported tip income.
2007-05-06 15:11:50 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Yes, it's income. There are so many places to find that information it's impossible to list them. Go to irs.gov and key "tip income" into the search box, or for starters look at the 1040, 1040A, or 1040EZ form - notice that the first line for entering your income reads "wages, salary, TIPS".
2007-05-06 14:28:46 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Yes. Tips are considered Compensation, the same as wages, salary and bonuses.
http://www.irs.gov/newsroom/article/0,,id=106783,00.html
2007-05-06 14:31:12 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋
definetly
2007-05-06 14:21:01 · answer #5 · answered by Bob Boblaw 2 · 0⤊ 1⤋