I just started, and some of the girls said that you get taxed on your tips so you shouldn't claim every last penny? True or nott?
What if I don't claim them all?
2007-09-16 17:01:26 · 8 answers · asked by wynnndhamm 2 in Business & Finance ➔ Other - Business & Finance
At some point in time the IRS will compare your tip income with your co-workers and you will be up the creek if they are not relatively close. They will assume you have submitted a fraudulent return and will ask for proof of everything on you current and previous returns. That is part of how they get compliance - by taking a hazy area like waitress tips and making a scary example out of one person in that area.
2007-09-16 17:10:49 · answer #1 · answered by Rich Z 7 · 0⤊ 0⤋
Should you? Technically, you're required by law, yes, but... I waited tables all through college, and I never knew one server who actually did.
The general "rule of thumb" is to claim 10% of your sales. So if your tables' total sales at the end of the night was $1,000, you should claim $100... [even though you actually made about $150-200.]
The only trick here is that you have to claim at LEAST your credit card tips, since they're tracked. You can get in big trouble for tax evasion if you don't.
So let's say on a night that you have $1,000 in sales, but $800 of it is credit card, and you have $125 in credit card gratuities... then you have to claim at least $125, even though it's more than the standard 10% of sales.
2007-09-16 17:11:49 · answer #2 · answered by july2007bride 2 · 1⤊ 0⤋
The IRS requires that you claim 8 % of your sales. Your employer should handle that. If they require you to report tips to them, settle on 10 % as a safe number.
2007-09-16 17:05:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Legally, yes you should, but don't. Only claim 10% of you total sales or your credit card tips (which ever is higher). Remeber, you must always claim all of your credit card tips, just not all of your cash.
2007-09-16 17:09:50 · answer #4 · answered by Melissa D 1 · 1⤊ 0⤋
Well...it depends, morally and legally you should claim 100% of what you make. Most waitstaff only claim between 8 to 10%...it's your choice.
2007-09-16 17:10:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
permit's see, $296 + $349 in suggestion = $645. fica/mc on $645 = $40 9.34 withholding for taxes on $645 = $seventy one. Paycheck $296 - $40 9.34 - $seventy one = $176. considering the fact which you have already got been given $349 suggestion, your take house is $525.
2016-12-26 14:44:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Legally you should, however you would be stupid to claim all tips.
2007-09-16 17:05:20 · answer #7 · answered by justin c 2 · 1⤊ 0⤋
If you claim you ll be taxed if you don't its pay back time when your caught.
Regina.
2007-09-20 16:53:03 · answer #8 · answered by regina s 1 · 0⤊ 0⤋