I am a server get tips but tip out 3 different people out of my money how do i get credit for this, i have the records

Forum|Forum|7 years ago
May 31, 2019
1 reply
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i have records

TurboTax Deluxe Online

Best answer by MargaretL

There is no credit for paying out a portion of your tip.

However, you may reduce the amount of your reportable tips if you share some of it with other employees.

For example, if you receive a $100 tip and give bartender $25, you only need to report $75.

Please see the below link for more information on tip income:

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/How-to-Claim-Tips-on-Your-Tax-Return/INF14782.html

How to enter in Turbo Tax:

https://ttlc.intuit.com/questions/1899731-entering-unreported-tips

MargaretLAnswer

Employee

There is no credit for paying out a portion of your tip.

However, you may reduce the amount of your reportable tips if you share some of it with other employees.

For example, if you receive a $100 tip and give bartender $25, you only need to report $75.

Please see the below link for more information on tip income:

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/How-to-Claim-Tips-on-Your-Tax-Return/INF14782.html

How to enter in Turbo Tax:

https://ttlc.intuit.com/questions/1899731-entering-unreported-tips

J

jameswilkinson82

Employee

What if your employer claims the full amount for you, and deducts the taxes each pay period? I am being taxed as if I made all of that money, but I am required by company policy to tip out a percentage of my sales to 4 different positions of support staff.

I

iemak

From what I was told from an Intuit employee is that you can only report payout income you receive from other employees not payout expenses you give out. Is that double dipping by the IRS or what?

This is what they sent me from the IRS

"If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Don't report on your income tax return any portion of the tips you receive that you pass on to other employees. However, you must report tips you receive from other employees."

Anyone clear on this???