2007-07-13 12:38:06 · 9 answers · asked by erik q 1 in Business & Finance ➔ Taxes ➔ United States
Tips are taxable income. Another piece of advice is if your employer 'allocates' tips. Your actual tips are taxable, so if you make more, you should pay on that basis, but the reverse is true too. If you can document that you made less, you can claim less.
2007-07-13 12:49:52 · answer #1 · answered by Dan 3 · 1⤊ 0⤋
Yes, if it was given as a tip - tips are required to be reported. And anyone with that much publicity will most likely be looked at closely.
But the giver could very probably make a good argument that it was a gift, not a tip, in which case it would be tax-free.
2007-07-15 23:56:46 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Dan is right, tips are NOT gifts! They are taxable income. You should check to see if your employer allocates a percentage of your sales for tips.
2007-07-13 20:07:42 · answer #3 · answered by Anonymous · 2⤊ 0⤋
I'm afraid she does if it was given as a tip...servers are supposed to report their tips when they file their income tax.
2007-07-13 20:29:33 · answer #4 · answered by prius2005toy 4 · 2⤊ 0⤋
tip's are not gifts. If they were, Waitresses could not receive less than minimum wage.
2007-07-13 19:45:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If she considers it a tip, then yes, she'll have to report it. I believe you can receive a one time gift of of up to $10,000 from someone which does not have to be reported according to the IRS.
2007-07-13 19:50:28 · answer #6 · answered by sv911 3 · 0⤊ 5⤋
Nope, its a gift. No need for the receiver of the gift to report the income. If the gift was a higher amount, then it needs to be reported.
2007-07-13 19:44:37 · answer #7 · answered by amysgetaways 3 · 0⤊ 5⤋
Unfortunately, the IRS will probably start looking for her, now that she's gone public with the whole thing. I would invest it if I were her though. I dunno.
2007-07-13 19:45:24 · answer #8 · answered by Tiffany 2 · 0⤊ 0⤋
Of course, the honest thing to do is report it. But would I? Probably not!
2007-07-13 19:48:06 · answer #9 · answered by froggsfriend 5 · 0⤊ 3⤋