waitressing & taxes please help me?

Question

i've worked at a small family owned restaurant for a year and notice a lot of fishing things. i actually have ss# and my other co workers are paid under the tables. anyways my question is... what is the whole tax ordeal.. can someone explain all this for me as in what i should pay taxes for and what kind of tax form i should get

Answer 1

Are they taking taxes out of your paychecks? If so, they are at least treating YOU legally even if they arent' with other employees, and you should get a W-2 at the end of the year showing your income and what was withheld for taxes. You'lll need a form 1040A or probably 1040EZ for your tax return at the end of the year - there's another form, 1040, but you probably wouldn't use that one, it's more complicated and you probably don't need it.

Another issue - your tips are taxable income. You are supposed to be reporting those to your employer. If you are, then they'll be included in your W-2 at the end of the year and you won't have to do anything extra. If you don't report all of your tips to your employier, then you have to report them on your tax return.

If they are NOT taking taxes out of your pay, then they are paying you under the table illegally also, and your tax filing gets more complicated.

Answer 2

Your employer should issue you a W-2 showing your salary, tips that you reported, any allocated tips, SS and Medicare paid, and state and federal withholding of income taxes.

What this means is that you are paid a salary plus you receive tips. You are supposed to report your tips to your employer for any month in which you receive more than $20 in tips. You employer is supposed to withhold Social Security and Medicare taxes on your tips from your paycheck.

All tips including those not reported to your employer are included in your "wages, tips and other compensation" line on your tax return. You pay income taxes, Social Security and Medicare taxes on both your salary and all of your tips.

If there are any tips that you did not report to your employer, but should have reported, you indicate that on your tax return and pay your SS and Medicare taxes on those tips when you do your return.

If you under-report your tips, the employer can allocate what you should have reported to you and record that on your W-2. You reconcile this when you do your tax return, indicating whether you actually received these tips or not.

Answer 3

Every year, they should be giving you a w-2 form which you use to file your taxes.