most don't claim tips at all
would it generate more money and in fact show good credit if you "over" claim the amount of tips you received. also having more taxed from your check and also raising your return.
2007-11-24 09:19:11 · 4 answers · asked by keelonboaz 2 in Business & Finance ➔ Taxes ➔ United States
It would not make sense to overstate your income, and it could be considered fraud. At the least, you will pay more than necessary in payroll and income taxes.
If your overstatement of income resulted in increased credits which were paid to you, you have a serious case of fraud.
Just report your tips as required.
2007-11-24 12:20:07 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Why would you want to "over"claim tips?
Besides paying income tax on money you didn't earn, You could be charged by the IRS for tax fraud.
By overstating your income, some people may claim a higher EIC than they would be entitled to.
So my answer is no, it is not wise to over claim your tips or any other income or deductions on your tax return.
2007-11-24 17:52:00 · answer #2 · answered by Mark S 5 · 0⤊ 0⤋
I see no reason to over claim your tips. You are just raising your tax bill for no good reason.
Also, if over claiming your tips puts you over the minimum wage for the night, you boss doesn't have to pitch in for the difference.
2007-11-24 17:23:00 · answer #3 · answered by Dan H 7 · 1⤊ 0⤋
I'm not sure I understand your question completely. But, from what I can figure out, I see absolutely no benefit from over-stating the tips you get. It will only cost you more in taxes.
I certainly don't understand how it would raise your return.
2007-11-24 17:27:57 · answer #4 · answered by Edward G 6 · 1⤊ 0⤋