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 09:28:57 · 2 answers · asked by keelonboaz 2 in Business & Finance ➔ Taxes ➔ United States
Why would you claim more income than you have? If you are trying to get a higher EIC, that's fraud and you could end up not only having to pay it back, but banned from getting EIC for the next up to 10 years.
2007-11-24 09:57:04 · answer #1 · answered by Judy 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 17:50:31 · answer #2 · answered by Mark S 5 · 0⤊ 0⤋