Thursday, March 14, 2013

How can I claim tips on my taxes?

Question by shesxchaotic: How can I claim tips on my taxes?
I work in a salon and I receive tips…unfortunately not a whole lot since business has really been down for months now.

Anyways, I hadn’t kept track of my tips and when I asked my employer what I should do, he told me that if you don’t know the exact amount, they calculate a percentage of the income you made there as the amount you probably recceived in tips.

Our salon does not allow tips to be put on credit card or included in a check so I only receive cash from clients. My husband and I also usually file our taxes online (on the TurboTax website) so it’s easier.

Can anyone help me out and tell me how I can claim some percentage of my income for tips so I don’t get in trouble with the IRS?? And I already went on the IRS website and couldn’t find anything other than “you have to claim tips”. Nothing telling me HOW to claim them.

Thank you!
To v b:
NO ONE at my work reported tips to our employer. Even if they did…we get CASH. Our boss doesn’t count it for us. Seriously…read the question in it’s entirety before you give me answers that don’t help me. Thanks

Best answer:

Answer by fwf43
You are only required to claim 8% of your tips. If the owner did not provide you with a tip report form, it seems your not at fault. The situation your in is very difficult. On your w2, is there a dollar amount shown in your allocated tips section? This section is for unreported tips that you must claim as income. If the box is blank, and your job and pay is not based on tips, and the employer has no record, and does not base your pay on tips, I would not report any.

What do you think? Answer below!


How can I claim tips on my taxes?

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